Full Report - Alliance Trust

Report & Accounts
for the year ended 31 January 2004

Contents
1
Directors’ Report
Financial Summary 2
History, Investment Policy and Risks 3
Chairman’s Statement 4
Financial Results 6
Investment 8
Investment Background 10
How the Assets are Managed 12
Portfolio Review 14
Alliance Trust Savings 26
Corporate Governance Report 28
Directors’ Remuneration Report 36
Report of the Auditor 40
Financial Statements 41
Information for Stockholders 52

2
Directors’ Report
Financial Summary
History, Investment Policy
and Risks
Chairman’s Statement
The directors present their report and the audited
accounts of The Alliance Trust PLC (“Alliance Trust” or
the “Company”) and its subsidiary undertakings
(together the “Group”) for the year ended 31 January
2004.
For clarity of reading, the report is divided into
sections with the main topics covered in each section
listed at the start.
We begin with a summary of our financial results,
followed by a statement of our objective, investment
policy and risks.
The Chairman’s Statement, which gives the outlook
for the Group, follows on page 4.
Financial Summary
(Company)
One Year Analysis
31 January 31 January
2004 2003
Pence per Pence per
ordinary ordinary
stock unit stock unit
Change
Dividend for the year 70.5 69.5 1.4%
Net asset value 2921.5 2385.0 22.5%
Stock price † 2605.0 2127.5 22.4%
Return Earnings 75.4 71.6
Capital 531.5 (930.8)
Total 606.9 (859.2)
31 January 31 January
2004 2003
Discount § 10.8% 10.8%
Total expense ratio ✛ 0.29% 0.31% ✠
One and Ten Year Analysis
Returns
Stock price total return † * 26.6% 70.9% 5.5%
Growth
1 year 10 years 10 years
absolute absolute compound
Earnings 5.3% 59.5% 4.8%
Dividend 1.4% 50.0% 4.1%
Net asset value 22.5% 37.0% 3.2%
† Source: Thomson Financial Datastream.
§ Discount at which the stock price stands relative to the net assets of
the Company.
✛
Expenses ÷ year end net asset value.
✠ The total expense ratio last year before the additional pension
contribution was 0.28%.
* The total return on the stock price shows the theoretical growth in
value over one and ten years, assuming that gross dividends are fully
reinvested, and ignoring re-investment charges.

3
History, Investment Policy and Risks
History
The Alliance Trust PLC can trace its origins back to the 1870s
when various land mortgage companies, including the Oregon
and Washington Trust Investment Company, were established
in Dundee. In 1888, these companies came together as the
Alliance Trust.
• From its start as a leading mortgage provider and land
developer in the United States, the Company began also
to invest in fixed interest securities.
• By the mid 20th century the Company had divested itself
of its land mortgage business, retaining some land and
mineral rights in various areas of the United States. By
this time the Company was invested largely in equities,
both quoted and unquoted, with some debt securities.
• The Company continues to be predominantly an
international equity investor, whilst retaining the power
to invest in other asset classes in order to meet its
objective.
• The Company is an investment company with investment
trust status. It employs its own staff to manage its
portfolio of assets. It continues to develop and engages
in a broader range of activities than most investment
trust companies.
Investment Policy
To achieve the Company’s objective, we seek long term growth
in both capital and income by;
• Investing in both quoted and unquoted equities across
the globe. We are not wedded to any index nor to any
rigid geographical, sector, or industry, asset allocation.
• Investing internationally in preference shares, and in debt
securities including government and corporate bonds.
• Investing in other assets, including property, and other
investment vehicles.
• Retaining the ability to borrow, as we have done from
time to time, and thereby to gear our portfolio.
• Investing in subsidiary and associated businesses which
allow us to expand into other related activities with the
objective of enhancing stockholder value. Alliance Trust
Savings is an example of this policy.
Risks
Investment in any asset has associated risk. The Company
limits this through a wide spread of investments. Presently,
minimal gearing prevents the magnification of the impact of
market volatility on our assets. We retain the ability to use
derivative instruments which we recognise may increase risk.
Objective
To be the core investment for those seeking
a long term store of increasing value.

4
Chairman’s Statement
Although we have seen the recovery of
equities over the year, after the
tribulations of a three year bear market,
complacency must be avoided and focus
maintained on our long term objective.
For the first time in three years, I am able to report a year end
increase in net assets, together with earnings at a record level
of 75.4 pence per ordinary stock unit. We are recommending a
final dividend of 35.5 pence, making a total dividend for the
year of 70.5 pence, an increase of 1 pence over that paid last
year and marking 37 years of consecutive increases. Although
we have seen the recovery of equities over the year, after the
tribulations of a three year bear market, complacency must be
avoided and focus maintained on our long term objective.
We have moved through a year of sharp contrast. In the first
half, when confidence regarding the economy remained low,
further concerns over terrorism and the prospect of war in Iraq
raised risk aversion to such a level that there were doubts in
some quarters over the validity of equities as an asset class. In
the second half of our year, the conclusion of the Iraq war and
the emergence of encouraging economic news removed much of
the uncertainty, investor confidence increased and equities
came back into favour, supported by the wide implementation
of monetary and fiscal measures across the world.
As fears of deflation gave way to progressively stronger
evidence of economic recovery, the best stock performance for
much of the year generally came from the stocks of companies
which had been most threatened by the long downturn. Latterly
however, the merits of companies with sound finances and
sustainable prospects were returning to investors’ favour, at the
expense of companies more compromised in financial and
operating terms. During the year under review, we moved
towards full investment of all our cash balances, maintaining
our focus on quality. It is encouraging that companies have
come to recognise more widely that the ability and willingness
to pay a growing dividend is an important component of return
to stockholders. Acceptance of this fundamental tenet is
particularly evident in the US, where increases have improved
from a low base, but also nearer home where the risk of
companies cutting dividends appears to have declined.
The global economic recovery has been led by the US. This has
already had a positive impact on many other regions of the
world through increased export activity. In the US itself, the
pick up in economic activity has boosted profits and raised
business confidence sufficiently to produce an increase in
investment spending. There are also some encouraging signs of
potential employment growth which, along with the return of
pricing power, will be a critical factor in determining the
sustainability of this recovery.
In Asia, particularly China, increased export activity and
infrastructure investment has already boosted employment and
income levels. All this has helped to stimulate consumer
spending in this region. There are fewer signs of improvement
in domestic activity in Europe and Japan. Any further
weakening of the US Dollar, and appreciation of both the Euro
and Yen, could hit export sectors in these regions. This would
increase the pressure on policy makers to adopt more
stimulative measures and thereby maintain the momentum of
the global economy through the rest of this year and into 2005.

5
We remain convinced that managing our own affairs helps us to
add value. The executive directors and staff, including the
investment managers, are employees and our retail operation,
Alliance Trust Savings (“ATS”) is conducted in house by its own
staff. The chain of command is short, sharp and effective.
The quality of customer service through ATS has been recognised
this year in reader-nominated awards from Investors Chronicle
and What Investment; and from the Guardian/Money Observer,
in whose Consumer Finance awards we scored best overall on all
criteria of friendliness, quality, flexibility, competitiveness,
efficiency and performance in the category of stocks and shares
ISA/investment provider. ATS’s own research shows that the
majority of new customers take out a savings plan with ATS
after personal recommendation from a relative or friend.
For ATS, the year was also one of contrast. There was pessimism
in the first six months, when activity was subdued, but this was
replaced by cautious optimism as investors began to look
forward to recovery in the markets and once again evidenced
increased confidence through their contributions to savings
plans. Net inflows recovered strongly in the second half, with
the value of customer assets invested through the ATS plans
finishing at £1,193m, an all time high. Nearly 17% of the
Company’s ordinary stock is now held through savings plans
provided through ATS.
The challenge we face in the retail market is to sustain and
grow what has been achieved in ATS. This has to be achieved in
the face of increased competition, consolidation in the market,
and the costs of responding to legislative and regulatory
change stemming from Brussels as well as Westminster.
It is imperative that, as a society, we save. The shock waves
being sent through the financial services industry in the UK,
particularly in the insurance industry, affect us all. The
transparency of the type of plans provided by ATS should be a
model for the simplification of pensions. It is with some
disappointment that, at the time of reporting, no final
decisions have been made by the Government on the detail of
what is proposed, save that the principle of a lifetime cap on
pension saving, which we regard as iniquitous, appears to be
set in stone. This continued uncertainty and dogmatism
benefits no one in the industry, least of all the UK
consumer, who is faced with ever increasing demands on
income and no clear blueprint for how savings should be made,
nor the UK employer who is now faced with the moral hazard of
the proposed Pension Protection Fund.
The investment trust, despite the harm done to the name by
the split capital scandal, should still be a preferred option for
saving. The industry is small compared to that of insurance and
unit trusts and continuing to position the Group correctly to
sustain value for stockholders will require careful attention.
In this process it is vitally important, for the long term benefit
of our stockholders, that we are able to attract and retain high
quality staff. During 2003, we continued to strengthen
capabilities in the key areas of investment and retail savings.
Investment in training and competence is essential. Since staff
retention levels are high, your Company reaps the benefits of
these costs, not other organisations. We introduced the
Chartered Financial Analyst programme for our investment
analysts in 2001 and have consistently achieved a pass rate
well in excess of the worldwide average. The ATS staff produce
excellent results in the Securities Institute examinations.
I should like to thank all staff for their efforts and for their
continuing commitment to serving stockholders.
It is against this background, and the challenges posed by this
environment, that I introduce Alan Harden to you as our new
Chief Executive, following Gavin Suggett’s retirement after more
than 30 years service with the Company. Gavin was the
architect of ATS and made an outstanding contribution to the
continuing progress and development of the Group. We wish
him a long and happy retirement.
Alan has a huge amount of international experience, both in
investment management and retail savings businesses and the
board wholeheartedly recommends approval of his appointment
as a director to the stockholders at the Annual General Meeting
in April 2004. At the same meeting, I shall be retiring after
nearly 13 years on the board. I have served for 8 years as
Chairman and am proud to have been associated with the
Alliance Trust. My sadness at departing is tempered by the fact
that Lesley Knox is succeeding me as Chairman and by the
knowledge that your Company is in good hands.
Bruce W M Johnston

6
Financial Results
Earnings
Dividend
Capital
Company Record
We begin our review of the year by reporting on our
financial results.
Earnings
The income we make on the Company’s assets, after deduction
of tax and expenses, constitutes the earnings of the Company.
In the year to 31 January 2004, our earnings rose to 75.40
pence per ordinary stock unit. This increase, on earnings last
year of 71.63 pence per ordinary stock unit, reflects dividend
growth in the portfolio generally and investment of most of our
cash balances, but also receipt of some significant one off
dividends, for example from the Royal Bank of Scotland and
Mitchells and Butlers. Such one off dividend receipts are not
predictable and distort the underlying, sustainable, income flow.
The strength of Sterling against overseas currencies, particularly
the US Dollar, reduced underlying earnings for the year.
Our total expense ratio is less than 0.3% of net assets or less
than 0.2% after tax relief. There is, however, an increase in
operating expenses compared to last year. The Company
incurred significant non-recurring recruitment and restructuring
costs in management succession planning and in making
investment for continuing development.
Dividend
In the interim announcement in August 2003, we referred to the
fact that we had been gradually reducing the disparity between
the interim and final dividends and had decided to take this a
step further by raising the interim dividend to a level closer to
50% of the anticipated recommended final dividend. Accordingly,
an interim dividend of 35 pence per ordinary stock unit was paid
in October 2003. The directors are now recommending payment of
a final dividend of 35.5 pence per ordinary stock unit. If approved
by the stockholders at the Annual General Meeting, this will make
a total dividend for the year to 31 January 2004 of 70.5 pence,
an increase of 1 pence on the previous period. We anticipate
being able to maintain a cautiously progressive dividend policy
funded from recurring income, rather than special receipts.
RPI and Dividend (pence per stock unit)
RPI
160
140
120
100
80
60
40
20
0
Dividend
per stock
unit
70
60
50
40
30
20
10
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Source: Internal

7
Capital
The year under review has, once again, been a volatile one with
the seesaw movement of equity markets. By the year end,
equity markets had recovered and our closing net asset value of
£29.21 per ordinary stock unit showed a net increase of 22.5%.
This was the first increase for three years.
A comparison of our net asset value over the year against the
UK FTSE All-Share index, which rose 27%, is less favourable. We
have a substantial proportion of our assets overseas and
currency moves have had a significant effect. In the US, where
we have close to 21% of our assets, the depreciation of the US
Dollar by nearly 11% against Sterling reduced stock market
returns on a currency adjusted basis, from 32% to just 19%. The
movement of Asian currencies, apart from the Japanese Yen,
were kept close to the US Dollar, either by intervention or by
increasingly fragile pegs. In Europe, returns were boosted by the
4% appreciation of the Euro against Sterling, but our exposure
accounts for just 10% of our portfolio, as we have been deterred
by the lack of visible structural reform and high valuations.
The greater influence, however, has been in terms of stock
selection. While we were sufficiently confident to move to full
investment we maintained our focus on companies better placed
in terms of management, market position, cash flow and
dividend paying capability. The companies which had been most
exposed by the last downturn were those which performed best
for much of the year. With hindsight, we were too cautious
about two areas in particular: Japanese banks, where we had no
exposure, and IT hardware, where our exposure was limited. This
adversely affected our relative performance.
5 Year Discount Record
31 January 1999 to 31 January 2004
4
6
8
10
12
14
16
18
20
22
24
Alliance Trust Discount
Source: Thomson Financial Datastream
Movement in UK FTSE All-Share Index 27.0% 25.3%
Attributable to asset allocation (1.9%) 14.9%
Attributable to stock selection (2.6%) (3.2%)
Movement in net asset value 22.5% 37.0%
Peer Group Discount
1999 2000 2001 2002 2003
Capital Performance
Attribution Analysis 1 year 10 years
The above attribution analysis reconciles the Company's net asset value with
the movement, over the stated time periods, of the UK FTSE All-Share Index
showing the effect of our asset allocation and stock selection. The figures
refer to capital performance only and make no allowance for income. The
FTSE All-Share Index is not used as a benchmark by the Company.
During the year the discount at which the stock price stands to
the Company’s net asset value narrowed to as low as 5% and
ended the year at 10.8%.
Company
Record
The Company’s Capital and Income
(shown in £millions)
Total Assets
less Current
Liabilities
Total Capital
Appreciation
(Depreciation)
Total
Income
Attributable to Ordinary Stockholders
(shown in pence per Ordinary Stock Unit)
Earnings
Capital
Appreciation
(Depreciation)
Dividend
Net Asset
Value
1994 1,079 178 29.7 47.28 353.56 47.0 2,133.1
1995 955 (129) 32.7 53.79 (256.15) 50.0 1,885.5
1996 1,228 272 34.4 56.30 539.42 53.0 2,428.2
1997 1,359 130 34.9 58.61 257.08 55.5 2,688.4
1998 1,565 203 38.8 64.89 402.50 59.0 3,096.8
1999 1,730 164 40.1 65.95 324.47 62.5 3,424.7
2000 1,888 156 41.0* 68.86 310.06 64.5 3,739.1
2001 1,976 87 40.3 67.26 172.30 66.5 3,912.2
2002 1,674 (305) 45.0 74.80 (604.73) 68.5 3,313.7
2003 1,206 (469) 43.6 71.63 (930.82) 69.5 2,385.0
2004 1,476 268 46.1 75.40 531.54 70.5 2,921.5
* From 2000, income excludes the associated tax credit.

8
Investment
Investment Team
Investment Approach
Investment Decisions
Investment is our primary activity, and is directed
towards our objective of providing the core
investment for those seeking a long term store of
increasing value.
Investment Team
Our investment department is headed up by the Investment
Director, Alan Young, along with Chief Investment Manager,
Colin Beveridge and two Senior Investment Managers, Grant
Lindsay and Neil Tong. The team includes an economist, three
other investment managers, and a number of portfolio
managers, together with the investment analysts who provide
the research coverage across our portfolio.
Investment Approach
Our overall objective is to provide the core investment for
those seeking a long term store of increasing value. To meet
this objective, our investment approach focuses on the search
for good value within high quality companies, which maintain
sound management, strong market positions, good cash flow
and the ability to pay a growing dividend. Our belief is that the
risk attached to our portfolio is potentially lowered both by
this approach and by the extent to which we can attain
diversification across geographical regions and industrial sectors.
Investment Decisions
The diagram on the next page illustrates the process by which
our investment decisions are made. Stock selection is central to
our approach and is the predominant driver. Surrounding the
stock selection discipline, we track economic and political
developments in all countries in which we invest (28 at the
year end). We also do this in those countries or regions where
we are considering investment. In addition, we monitor closely
any emerging or expected investment themes concerning
individual industries, the corporate sector as a whole, or equity
markets around the world.
The environment in which we operate is highly fluid, in terms of
existing and expected political factors, regulation, commercial
law and technological change. Information relating to each of
these aspects is fed into our asset allocation process providing
a top down view of the relative attractiveness of different asset
classes, and we cross reference this against information from
brokers and other sources. This process and its content are
monitored by our board of directors. We formally present our
investment strategy to the board at least twice a year, but
discuss progress and necessary changes to our strategy monthly.

9
Within our equity portfolio, managers and analysts complete an
extensive analysis of individual stocks which includes the use of
our own dedicated worksheets that enable us to compare
companies on a like-for-like basis. The worksheets are a tool in
making an informed judgement as to whether individual stock
or sector valuations are reasonable, and in forecasting profits
out of which dividends are paid.
Decision making involves looking at the activities of companies,
in which we are considering investment, in their wider context
and in addition to evaluating a company’s management includes
reviewing its policies and behaviour on issues of social
responsibility and environmental impact. These factors are
considered in an appropriate and balanced manner when we
make our initial investment decision and on a continuing basis.
We may engage in dialogue with the companies on particular
issues and, if not satisfied, may vote against the
recommendation of the board of a company in which we hold an
investment. Such factors also contribute to decisions to divest.
Our managers and analysts travel widely to meet the management
of companies in all regions of the world, and to attend
conferences and seminars. This is essential in order to remain
well informed of the latest company and industrial developments.
Our investment approach is geared towards identifying core
holdings with good long term growth potential. We seek
companies which are strong enough to withstand difficulties
brought about by an ever changing background of economic
cycles, corporate trends and volatility in capital markets. These
factors can influence significantly the level of risk attached to
our portfolio over short time horizons, but have tended to
prove less marked over long periods.
An account of the present economic background follows on page
10, followed by a discussion of the key issues facing the corporate
sector and developments in the major equity markets. Our
investment outlook is on page 11 followed, on pages 12 and 13,
by details of how our assets are currently allocated and managed.
Economics
and
Politics
Asset Allocation
Investment
Themes
Considerations
Income
Portfolio
Stock
Selection
Managers
Input from
Market,
Valuations
Analysts
Sector
&
Stock
Operating Environment

10
Investment Background
Economies
Companies
Equity Markets
Investment Outlook
This section focuses on the main economic, corporate
and equity market events which took place during our
financial year and gives our investment outlook.
Economies
The first few months of our financial year were marred by the
war in Iraq and the outbreak of SARS in Asia, both of which
had a negative impact on confidence around the world, at the
business, consumer and investor level. By the summer months,
following the end of the war and the containment of SARS,
business confidence was beginning to return, most notably in
the US where both monetary and fiscal policy remained
particularly supportive. This improvement in sentiment resulted
in a rise in orders and production levels which boosted profits,
eventually encouraging the increase in investment spending
which had been so long awaited.
The recovery of the US economy brought with it an expansion
in its budget deficit and further deterioration in its trade
account, raising questions over the long term financing of
these deficits and putting significant downward pressure on the
US Dollar, as illustrated in the graph below. During our financial
year, the US Dollar fell 12% in trade weighted terms,
characterised by an 11% fall against Sterling, a 12% decline
against the Yen and a 14% drop against the Euro. This
depreciation of the US Dollar has increased the competitiveness
of US exporters and should help protect US employment, a key
issue in the run up to the Presidential election in November.
Asian economies eventually recovered from the negative impact
of SARS on both business and tourist related travel. Export
activity has also picked up significantly in recent months as the
US economy recovered. This is most notable in China, which
has the additional advantage of a currency fixed to the
depreciating US Dollar. The question now being asked is
whether this increased export activity will be sufficient to raise
employment and income levels, stimulating domestic spending
which is a necessary condition for this recovery to become
US Dollar, Sterling, Yen and Euro - Trade Weighted
31 January 2003 to 31 January 2004
110
Euro
105
100
95
Sterling
Yen
90
Dollar
85
Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan
Source: Thomson Financial Datastream

11
sustainable. Although there are some encouraging signs that
this will occur in Asia, the picture is still far from clear in
Europe where unemployment remains high, both fiscal and
monetary policy are relatively tight, and the appreciation of the
Euro is threatening future export growth. The forthcoming
accession of Eastern European economies to the EU may help
stimulate demand within the region.
UK companies are also grappling with the impact of the falling
US Dollar, but UK domestic demand has remained relatively
robust, underpinned by the low level of unemployment and the
wealth effects associated with the recovery in equities and
ongoing strength in the housing market. Interest rates have
been raised already in the UK, ahead of the upward moves
expected around the world as the recovery progresses.
Companies
Conditions for many companies improved significantly during
our financial year. Increased demand, led by the US, produced a
recovery in profitability which helped to boost business
confidence. However, firms remained cautious on the whole,
achieving profits growth predominantly through cost cutting, using
cash flow gains to strengthen balance sheets and taking advantage
of cuts in interest rates to refinance debt at lower levels.
The recovery in profits and sentiment led eventually to an
increase in capital spending, particularly in technology related
products. Although layoffs have decreased, firms have been
reluctant, so far, to hire new workers, particularly in the
western economies where labour costs are high. One of the
main consequences of globalisation has been fierce competition
stemming from Asia, limiting pricing power around the world,
even as demand grows. Many western companies are still choosing
to relocate in Asia, particularly China, to exploit its lower labour
costs and thereby increase both competitiveness and profitability.
This trend could remain in place for some time, limiting
employment and income growth in the developed economies.
Equity Markets
The graph on the right illustrates the gains made in equity
markets during our financial year, on a Sterling adjusted basis.
This progress followed three consecutive years of declining
markets, one of the longest bear markets in history, which had
resulted in many stock market indices halving from their peak
levels. Since March 2003, markets have made good progress,
reflecting the easing of geopolitical concerns following the war
in Iraq and growing confidence in the economic recovery and
prospects for corporate profitability.
The US market performed best in local terms, rising 32% over
our financial year, but the depreciation of the US Dollar reduced
this to just 19% on a Sterling adjusted basis. The main equity
market indices rose 28% in both Europe and Japan and the
appreciation of the Euro and Yen boosted these gains even
further, to 33% and 31% respectively. The UK market rose 27%
over the year, held back by the more defensive nature of many
of its main companies.
At the sector level, technology stocks returned to favour,
boosted by evidence of a recovery in capital spending. The FT
World technology index rose more than 42% over the year,
retracing much of its decline of the previous 12 months.
Prospects of a cyclical recovery also enabled general industrial
stocks to perform well, rising more than 35% during our
financial year.
Investment Outlook
We expect economic growth to continue over the next few
months, as both fiscal and monetary policy will remain
relatively loose in the US ahead of the Presidential election in
November. Beyond that point it may prove necessary for other
regions to drive global activity forward, but this would require a
significant recovery in domestic demand in both Europe and
Japan. Both areas still have some structural problems to
address, particularly when currency appreciation threatens to
reduce competitiveness. In addition, the policy stimuli which
were necessary to generate economic recovery in the US have
caused imbalances there to worsen, leaving the US Dollar still
vulnerable to downward pressure. Further currency adjustments
may be required in the year ahead, but it is critical that these
moves are smooth as volatility would cause additional problems.
Equity valuations rose over the year in anticipation of a strong
recovery in company profits and this left some equities looking
relatively expensive by historical standards. Profits growth
should hopefully slow to a more sustainable pace over the next
few months. We would then expect stock markets to appreciate
steadily, if at a slower rate than we have seen recently.
Increased takeover activity may offer opportunities for
additional returns.
Equity Markets - Sterling Adjusted
31 January 2003 to 31 January 2004
135
130
125
120
115
110
105
100
95
Japan
Europe
Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan
UK
US
Source: Thomson Financial Datastream

12
How the Assets are Managed
Asset Allocation
Global Sectors
Investments Managed
Regionally
Stock Selection
The Twenty Largest
Investments
This section describes how our investment outlook
has influenced our recent stock selection.
Asset Allocation
Our investment outlook is relatively positive ahead of the US
Presidential election in November 2004, but becomes more
cautious as we look beyond that into 2005. Once both fiscal and
monetary policy are tightened in the US, it will be necessary for
other regions to drive global activity forward. Any further
depreciation of the US Dollar in the year ahead will add to the
pressures on both Europe and Japan to address the structural
problems which presently impede the flexibility of these economies.
We still believe that the best long term returns will come from
investment in real assets through active businesses. For this
reason we remain invested primarily in equities and we increased
our exposure by a net £47.7m during the past year. Having a
global perspective enables us to spread the risk associated with
equity investment across a wide selection of countries and
sectors, building an increasingly diverse portfolio of individual
companies. As explained in the description of our investment
decision making process, we focus predominantly on strong
companies with good management, the potential for long term
growth in profits and with the ability to pay growing dividends.
Global Sectors
More than 50% of our assets are managed on a ‘global sector’
basis, which means that we evaluate opportunities for investment by
looking at a business sector as a whole, disregarding domestic
boundaries. This approach enables us to focus on important
industry trends which are occurring across the whole world. It
also gives us the ability to compare company valuations on an
international basis and to base our stock selection primarily on a
company’s industrial positioning. The issue of where a company is
listed is a secondary factor. The graph below illustrates the recent
performance of these particular sectors on a Sterling adjusted basis.
Global Sectors - Sterling Adjusted
31 January 2003 to 31 January 2004
150
140
130
120
110
100
90
IT
Financials
Oil
Pharmaceuticals
Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan
Source: Thomson Financial Datastream

13
During the financial year to 31 January 2004, we invested a net
£8.2m into that portion of our portfolio managed on a global
sector basis. We focused primarily on resources and basic
industries, where we invested £7.9m, encouraged by significant
infrastructure developments in Asia and the consequent demand
for metals and resources. We also added a net £2.9m to
financials, focusing predominantly on the UK. We made net
sales in health care and pharmaceuticals, reducing our exposure
to several US holdings in anticipation of US Medicare reform. In
the information technology sector we increased our exposure to
software and service companies in the US and UK, but this was
offset by sales of some of our hardware related investments.
Investments Managed Regionally
Although more than half our portfolio is managed on a ‘global
sector’ basis, this approach may not be suitable for many sectors
which have a domestic rather than an international bias. A good
example is the retail sector where trading and profits are
closely linked to conditions in the local economy, and where
formats rarely travel well across international boundaries. We
continue to manage these sectors on a geographical basis,
paying particular attention to the expected economic, industrial
and stock market influences in each individual country.
Over the last year we increased our exposure to UK industries
by a net £18.4m, focusing our activity in the media sector
where recent legislation is expected to encourage further
corporate activity. We also increased our exposure to beverage
companies and utilities, both of which offer attractive
opportunities. In Asia, we have been particularly encouraged by
China’s recent and expected economic growth and gained
exposure to this not just through Chinese companies but also
through companies located elsewhere in Asia. The graph on this
page illustrates the relatively strong performance achieved by
stock markets in Thailand, China, Hong Kong and Taiwan. We
invested a net £26.8m into the ‘rest of the world’ during our
financial year, focusing purchases on opportunities in real
estate stocks, construction related activities and support services.
We also reduced our exposure to US industries by £4.6m.
Stock Selection
The table below shows our largest holdings and the detailed
review of our portfolio follows on pages 14 to 25.
The Twenty
Largest Investments £m
Shell Transport & Trading 44.6
Royal Bank of Scotland 43.2
BP 42.8
GlaxoSmithKline 42.6
Vodafone 34.1
HBOS 26.2
Barclays 19.9
Diageo 17.5
Aviva 15.8
HSBC 15.5
Rio Tinto 15.1
Abbott Laboratories 14.8
Lloyds TSB 14.3
Persimmon 14.3
BHP Billiton 14.0
Slough Estates 13.8
Wal-Mart 13.0
EMAP 12.8
Standard Chartered 12.6
Unilever 12.5
This list excludes the Company’s holding in its subsidiary, Alliance Trust (Finance)
Limited (“ATF”), which amounted to £18.1m gross, or £6.1m net of the loan which
ATF has advanced to the Company (see note 8 on page 48 and note 17 on page 50).
Asian Markets - Sterling Adjusted
31 January 2003 to 31 January 2004
220
200
180
160
140
Thailand
China
120
100
80
Hong Kong
Taiwan
Feb Mar Apr May June July Aug Sept Oct Nov Dec Jan
Source: Thomson Financial Datastream

14
Portfolio Review
Resources and Basic
Industries
Capital Goods
Consumer Goods and
Products
Services
Financials
Investment Companies
Fixed Income
This section of our report gives a review of the
portfolio which, at the year end, contained 363
investments.
The hoop diagrams below give snapshots of the whole
portfolio, first by geography and then by sector.
In the narrative, we list all the investments held in
each sector reviewed which had a year end value
greater than 0.1% of the total portfolio valuation.
The exceptions are the sections on investment
companies and fixed income where we show all the
holdings. In all, investments equal to 94% of the
portfolio by value are shown.
The table at the top of page 25 summarises the
investment changes over the year. The classification
table on page 25 gives a breakdown of the main
industries in each sector and the percentage of the
portfolio held in each geographical area. As we have
explained on pages 12 and 13, some assets are
managed on this geographical basis, but others are
managed from a global sector perspective.
Investment Changes
Classification of
Investments
The portfolio
by geography
£m
UK 799
Europe 147
North America 307
Japan 65
Rest of World 158
Total 1,476
The portfolio
by sector
£m
Resources and
Basic Industries 297
Capital Goods 187
Consumer Goods
and Products 253
Services 324
Financials 340
Investment
Companies 40
Fixed Income and
Other Net Assets 35
Total 1,476
Figures as at 31 January 2004

15
Resources and Basic Industries
Oil, Chemicals and Resources
£m
Tight markets and speculative activity in commodity futures
contributed to rising metal and ore prices. The higher demand for
many base resources is in large measure due to China’s numerous
infrastructure projects. Looking forward, some softening in the pace
of development in China is anticipated, but world economic activity
is likely to remain healthy, helping to sustain demand. In the mining
sector we strengthened positions through additions to Rio Tinto and
BHP Billiton and two relatively new Chinese holdings, Yanzhou Coal
and Jiangxi Copper.
The oil price exhibited a different price pattern. Demand was similarly
strong, but, despite this, prices lagged. An unexpected re-classification
of reserves caused our large investment in Shell to perform
disappointingly. Valuations now reflect many of the specific concerns
that investors hold. It is our belief that Shell’s overall resource base
can still be profitably exploited.
We carried out modest additions to PetroChina, CNOOC, Burlington
Resources and BG Group. In chemicals, we sold ICI and reinvested
into new holdings which included BOC.
Shell Transport & Trading 44.6
BP 42.8
Rio Tinto 15.1
BHP Billiton 14.0
Exxon Mobil 11.2
John Wood Group 10.4
Total 7.3
Air Liquide 4.5
PetroChina 4.1
Schlumberger 3.3
British Vita 2.7
RPM International 2.6
Woodside Petroleum 2.5
Johnson Matthey 2.2
Burlington Resources 2.1
BG Group 2.1
Shin-Etsu Chemical 2.1
Croda 2.1
Linde AG 1.9
BOC Group 1.7
Other Holdings (14) 12.0
Total 191.3
Construction and Building Materials
£m
Despite fears that house prices would go into reverse, the UK housing
market performed strongly. Prices did fall in the higher end markets
of South East England, but the Midlands, the North East, Wales and
Scotland all experienced strong growth. Looking forward, a crash
seems unlikely, but the market is less of a clear one way bet for
house builders. In this context, company strategy is increasingly
important to stock selection, and mergers are also possible. Crest
Nicholson, which is decreasing its dependence on the London market,
is one holding to which we are adding.
Persimmon 14.3
Wolseley 7.2
Aggregate Industries 4.3
Siam Cement 3.2
Lafarge 3.2
Crest Nicholson 3.2
Marshalls 2.9
Anhui Conch Cement 1.6
Other Holdings (3) 3.2
Total 43.1
Building material demand is benefiting from global recovery. A new
holding is Anhui Conch Cement, the largest cement producer in China
which is benefiting from spending on infrastructure. European
demand remains mixed. We reduced our holding in Lafarge following
its rights issue which we believe to have been poorly justified.
Wolseley has also been reduced as its shift towards acquisitions to
achieve growth may increase risk.

16
Portfolio Review
£m
National Grid Transco 7.9
Scottish & Southern 7.0
Scottish Power 6.4
Huaneng Power 6.3
Kelda Group 5.7
Consolidated Edison 4.5
Beijing Datang Power 4.0
Constellation Energy 3.8
United Utilities 3.2
Australian Gas Light Company 2.8
Hawaiian Electric 2.4
WPS Resources 2.4
Hong Kong & China Gas 2.2
Hong Kong Electric 2.0
Other Holdings (2) 2.2
Total 62.8
Utilities
Regulatory reviews in UK and Europe add to the risk associated with
most of our holdings in this sector. However, valuations are
reasonable and initial soundings point to an encouraging regulatory
result. The economic outlook also appears broadly supportive. We
participated in United Utilities’ rights issue which will assist it to
upgrade its asset base, against which the company should hopefully
earn a favourable return. We also added to National Grid Transco,
Scottish Power and Scottish & Southern but sold Suez, and
Autostrade was taken over.
Our exposure to Huaneng Power and Beijing Datang Power, where the
fundamental investment case continues to be very strong, was
increased. We also purchased a new holding in Hong Kong & China
Gas which looked undervalued following a period of poor investor
sentiment during the SARS crisis, and which offers exposure to the
growing Chinese market as well as to recovery in Hong Kong.
In this sector, yields are attractive and dividends are being increased,
albeit modestly.
Capital Goods
£m
General Industrial
Pentair 4.9
Denway Motors 3.4
Swire Pacific 3.0
Toyota 2.4
Hyundai 2.3
Keppel 2.0
FCC 1.9
Lear 1.6
Honda 1.5
Other Holdings (10) 9.4
Total 32.4
Pentair, a diversified US company and our largest industrial holding,
continued to perform well in its key professional tool and fluid
technology product lines. However, its share price lagged many cyclical
companies whose share prices rebounded from extremely depressed
levels. In the long run, Pentair has the advantage of a better track
record and established market positions on which to build.
Elsewhere, we carried out a number of changes. A new holding was
established in US car interior specialist, Lear Corporation. We
switched from Delphi to fund the purchase. We maintained our
exposure to Japanese auto companies as they continue to gain
profitable market share globally. Denway Motors of China is an
affiliate of Honda, positioned to exploit increasing car ownership in
mainland China, and so we increased our holding. In the aerospace
sector we reduced troubled BAE Systems by selling a portion of our
convertible holding during the year.

17
Electronics and Engineering
This sector also has a high share of cyclical businesses. Many are very
well-run companies, with good industrial positions and attractive
yields. With these attributes in mind we increased our holdings in
Sandvik, Kidde and Bodycote. The bearings industry is also
interesting, as it is experiencing consolidation, improved pricing and
a more rational approach to capacity additions. This led us to
purchase a holding in the Swedish manufacturer, SKF.
We added to the steel processor, Worthington Industries, a company
not exposed to the legacy issues dogging steel manufacturing. It is
modestly valued, has an above average yield, and a long track record
of paying increased dividends.
Intense competition caused us to dispose of Sony and to redeploy the
proceeds into the precision lighting company Ushio and the global
air-conditioning manufacturer Daikin Industries.
£m
Canon 11.4
General Electric 8.9
Keyence 5.4
Sandvik 4.8
Renishaw 4.7
Hoya 4.7
Spirax-Sarco Engineering 4.3
Kidde 3.9
Illinois Tool Works 3.5
SKF 3.5
Bodycote 3.1
Worthington Industries 2.9
Grainger 2.6
Matsushita Electric 2.3
Ushio 2.2
Emerson Electric 2.1
Daikin Industries 1.7
Mabuchi 1.6
York International 1.5
Other Holdings (6) 5.0
Total 80.1
Information Technology
£m
The backdrop improved after three extremely challenging years with
demand for technology products increasing and share prices
rebounding. New digital devices in the consumer sector sold well in
both emerging and mature economies, and initial signs of increased
business investment offer some encouragement for the outlook.
It was also encouraging to note a better trend in the alignment of
shareholders’ versus managers’ interests. Microsoft’s initiation of
dividend payments and the abandonment of stock options are
prominent examples. Corporate activity increased as companies aim
for size and for new markets but over-capacity in the important semiconductor
and telecom equipment segments remains to be addressed.
In the US, we reduced Intel and Dell due to valuation concerns and
used the proceeds to increase software investments that benefit from
higher levels of corporate expenditure. Additions included Oracle and
Microsoft and a new holding in Check Point Software which provides
security products to businesses around the world.
Microsoft 11.6
Cisco Systems 7.4
Intel 6.9
First Data 5.9
Sage 5.3
Nokia 4.9
Motorola 3.6
Texas Instruments 3.2
SAP AG 3.2
Samsung Electronics 2.6
Oracle 2.4
Flextronics 2.2
Jabil Circuit 2.1
Dell 2.0
Analog Devices 1.8
Thomson 1.6
Other Holdings (11) 8.1
Total 74.8

18
Portfolio Review
Consumer Goods and Products
£m
Diageo 17.5
Unilever 12.5
Reckitt Benckiser 9.7
British American Tobacco 7.4
Pepsico 6.3
Altria 5.6
Allied Domecq 5.4
Nestlé 5.1
Fosters 3.0
Geest 2.7
Scottish & Newcastle 2.3
BAT Malaysia 1.9
Kao Corporation 1.8
Kraft 1.7
Fraser & Neave 1.6
Other Holdings (7) 7.9
Total 92.4
Beverages, Foods, Household and Tobacco
Share price performances were mixed across this broad group. Tobacco
stocks returned over 40%, as an improvement in the US legal
environment eased long term solvency concerns. Spirits companies
benefited from good demand in most markets. However, food
manufacturers continued to experience difficult selling and pricing
conditions. This was exacerbated by the “Atkins” phenomenon driving
demand for low carbohydrate foods. Most global food manufacturers
are only now entering this market in a meaningful way. Holdings in
Unilever and Nestlé were reduced.
Reckitt Benckiser managed to avoid overpriced acquisitions, and
hence was able to raise the dividend for the first time since the
merger in 1999. This caused the share price to rise and we reduced
our large holding on valuation grounds. We recycled the proceeds into
Allied Domecq, BAT and Diageo. They have equally good prospects
and look undervalued.
Our Chinese holding, Peoples Food, a meat processor, was increased
following SARS-induced share price weakness.
£m Healthcare and Pharmaceuticals
GlaxoSmithKline 42.6
Abbott Laboratories 14.8
Johnson & Johnson 10.9
Aventis 10.4
Amersham 8.0
Bristol-Myers Squibb 7.8
Novartis 7.4
UCB 6.6
Merck 5.6
Takeda Chemical 5.1
Gyrus Group 4.7
Celltech 4.6
Altana AG 3.4
Fresenius 3.2
Baxter International 3.1
Cardinal Health 2.8
Alcon 2.6
UnitedHealth 2.5
Zimmer Holdings 2.1
Igen 2.1
..
Rhon-Klinikum 2.0
Steris 2.0
Gedeon Richter 1.9
HCA 1.7
Other Holdings (4) 2.9
Total 160.8
There were some positive developments in the industry; new drug
approvals increased, particularly for biotech drugs, and latterly
pharmaceutical sales growth accelerated, producing an overall sales
increase of 8%. However, the sector lagged, including, unfortunately,
our major holding, GlaxoSmithKline. We took the opportunity to
increase our holding in it on a low valuation, convinced of its long
term prospects.
Looking ahead, US Medicare reform affects much of the industry. Its
main aim is to improve health cover for seniors, which should boost
drug sales. However, growing healthcare costs worldwide represent a
major funding challenge to governments and initiatives are underway,
including discounts designed to contain spending. Our focus is to
invest in companies producing innovative products.
We cut the amount invested in the sector, reducing exposure to Merck
and Johnson & Johnson and selling SSL International, Xenova and
Medco. New investments include HCA, the American hospital chain,
and Baxter International, through its 7% convertible bond. We
increased Abbott Laboratories, Gyrus Group and Celltech.

19
Services
Retail
£m
The UK economic backdrop remains supportive of consumer spending,
but the potential for higher interest rates on high levels of household
debt does carry risks. At the company level, intense corporate activity
saw Debenhams, Selfridges and GUS’s catalogue division being taken
private. There is currently an ongoing bid for New Look. Consolidation
of the UK food retailing industry is also underway, following the
Competition Commission’s clearance of Wm Morrison’s takeover
of Safeway.
Across Europe, retail spending was affected by weakness in the major
economies. Some recovery is hoped for this year. Germany offers
reasonable prospects aided by income tax cuts. We are building a new
holding in Metro, Germany’s premier retailer, with a growing
international business. Earlier in the year, when trading concerns
appeared overdone, we added to Next and Marks & Spencer. Safeway
and N Brown were sold. In the US, Wal-Mart lagged its peers in terms
of share price but we expect it to benefit from economic recovery and
from the fiscal and monetary support for consumer spending.
Wal-Mart 13.0
Tesco 11.3
GUS 9.5
Home Depot 8.3
Next 5.6
Kingfisher 4.5
Marks & Spencer 3.4
New Look 3.1
Sainsbury 2.8
Walgreen 2.6
CVS 2.5
Pier 1 Imports 2.1
Metro AG 1.7
Other Holdings (7) 6.1
Total 76.5
Brewers, Hotels and Leisure
£m
The key theme for hotels has been one of recovery from a cocktail of
problems, ranging from terrorism fears and war in Iraq, to economic
slowdown and SARS. In the early part of 2003 this caused share price
weakness in Hilton Group but gave a good opportunity to add to that
holding. Broad resolution of these issues and global economic
improvement led to a recovery in hotel stocks.
Our core public house holdings, Wolverhampton and Dudley Breweries
and Greene King, enjoyed buoyant trading helped by good weather
and minimal exposure to an oversupplied high street. Six Continents
demerged, forming a public house group, Mitchells and Butlers, and a
hotelier, Intercontinental Hotel Group, with surplus cash also
distributed to shareholders.
Hilton 6.5
Wolverhampton & Dudley 4.6
Intercontinental Hotels 3.9
Greene King 3.8
Accor 2.7
Bob Evans Farms 2.7
Whitbread 2.4
Other Holdings (5) 5.6
Total 32.2
New holdings were started in the China and Hong Kong restaurant
chain, Café de Coral, as it offers good exposure to Asian growth, and
in Accor, the French hotelier with strong positions in France and
the US.

20
Portfolio Review
£m
EMAP 12.8
Granada 6.2
Gannett 5.2
Reed Elsevier 5.2
Arnoldo Mondadori Editore 4.7
Pearson 4.6
Television Française 4.1
Carlton 4.1
United Business Media 4.1
Mediaset 3.7
VNU 3.1
Yell Group 2.4
Singapore Press Holdings 2.2
Other Holdings (7) 6.6
Total 69.0
Media
After two years of decline, global advertising expenditure improved in
2003. US economic recovery was the main driver, although European
expenditure also grew marginally as confidence returned. The outlook
is expected to remain positive as global economic growth expands.
Advertising demand should also benefit from the US general election
and the Olympic Games.
In the UK, the Communications Bill passed through Parliament. Its
main effects are the relaxation of the media industry’s consolidation
guidelines. Granada and Carlton’s merger to form ITV PLC was cleared
with few conditions and further corporate activity appears likely in
the radio and newspaper industries.
We increased exposure to more economically sensitive companies by
adding to United Business Media and Granada, and by building new
holdings in Television Française, the French TV company, Capital
Radio, the UK radio broadcaster and Cheil, the leading Korean
advertising agency. These acquisitions were partially funded by
reductions in our holdings of EMAP, Pearson and VNU.
£m Transport
BAA 6.8
Associated British Ports 3.0
Forth Ports 2.5
First Group 2.2
Zhejiang Expressway 1.8
Other Holdings (3) 2.0
Total 18.3
Airlines had a volatile year. Demand fell due to war in Iraq and the
SARS outbreak, and then recovered on resolution of these issues and
better global growth. Structurally, the airline industry remains
unattractive due to oversupply and high cost structures. We do not
hold any airlines, preferring to gain exposure to the long term growth
in air travel through BAA, the airport operator. BAA has additional
growth potential via the development of Terminal 5 at Heathrow and
the new runway at Stansted. We increased our holding earlier in
the year.
Our exposure to port operations through AB Ports and Forth Ports
offer attractive growth potential through development opportunities.
AB Ports in particular is seeking permission to establish a deep water
container facility at Dibden Bay in Southampton.
Our US holding in United Parcel Services was sold. The shares reached
an excessive premium following buying by tracker funds after being
admitted to the main US market index.

21
Support Services
Many companies in this area benefit strongly from improving
economic growth. With this expectation, investors bought into
recruitment companies in the second half of the year as Michael Page
and Hays reported some improvement in demand.
Share prices of the relatively less cash-generative companies, exposed
to longer term growth influences, did less well. We took advantage by
adding to Compass and Serco on very reasonable valuations.
Improving economic growth and continuing government spending
continue to support outsourcing companies. Securitas was sold given
its persistent difficulties in the US guarding market.
Holdings in CDW, Pactiv and China Merchant Holdings were also
increased. China Merchants is very well placed to participate in Asian
expansion through its port operations in Hong Kong and China.
£m
Compass 10.2
Electrocomponents 6.2
Hays 6.0
Premier Farnell 5.4
Sysco 5.0
Brambles Industries 4.6
CDW Computer Centers 4.2
China Merchants Holdings 3.4
Pactiv 2.9
Serco 2.8
Michael Page 2.8
Secom 2.4
Other Holdings (3) 2.6
Total 58.5
We invested in two new companies, Republic Services, the US waste
haulier and Patrick, the Australian logistics and port company,
another beneficiary of Asian growth.
Telecommunications Services
£m
European mobile operators benefited from strong earnings growth,
greater capital discipline and increased cash flow. These positives
were offset by reductions in termination charges, following another
tough regulatory review.
A resumption of large capital expenditure is likely as infrastructure is
built to enable the provision of new services. In the UK, competitive
price pressure may increase as “3”, owned by Hutchison, the Hong
Kong conglomerate, tries to build market share. Our holding in MMO2
was sold as we believe it is the most vulnerable to this competition.
Large European operators continue to lose fixed line market share. BT
and others have responded by diversifying their income sources and
cutting costs. Positively, this has led to increased dividends from BT
and Telefonica and commitment to progressive dividend policies.
Vodafone 34.1
BT Group 9.1
Verizon Communications 5.2
Telefonica 4.8
China Mobile 3.1
SBC Communications 2.9
Telefonos de Mexico 2.2
America Movil 2.0
Bellsouth 1.8
AT&T Wireless Services 1.6
Other Holdings (2) 2.3
Total 69.1
AT&T Wireless is a new US holding, The company’s cashflow is
encouraging, and expectations for the US mobile phone market are
more realistic.

22
Portfolio Review
Financials
£m
Royal Bank of Scotland 43.2
HBOS 26.2
Barclays 19.9
HSBC 15.5
Lloyds TSB 14.3
Standard Chartered 12.6
BNP Paribas 5.4
Commonwealth Bank
of Australia 5.3
ABN Amro 4.8
Wells Fargo 4.7
TCF Financial 4.4
UniCredito Italiano 3.9
Bradford & Bingley 3.7
Bank of America 3.7
UBS 3.5
Northern Trust 3.5
Société Générale 3.4
Siam Commercial Bank 3.0
Comerica 2.9
Banco Santander Central 2.8
Bank One 2.6
FleetBoston Financial 2.5
Nordea Bank 1.9
Banco Bilbao Vizcaya
Argentaria 1.8
Kookmin Bank 1.7
Kasikornbank 1.6
Commerzbank 1.6
Other Holdings (7) 6.3
Banks
Net interest margins continue to be pressurised by increased
competition, regulatory change and low interest rates, although
recent monetary tightening has provided some relief. In this
environment, banks must optimise their non-interest income, cost
control, credit quality and capital allocation. In both the UK and US,
there are growing concerns about the consumer and mortgage lending
markets. Accordingly, lower quality investment banks exposed to a
better capital market environment have generally been outperforming
retail banks of late.
We added to Barclays, Lloyds TSB, Royal Bank of Scotland and
Bradford & Bingley and reduced HBOS. In the US, consolidation was
to the forefront with the Bank of America-FleetBoston Financial and
JP Morgan Chase-Bank One mega-mergers. We added to Comerica, a
US bank exposed to late-cycle commercial lending. Japanese banks
bounced back strongly as the reform process and local economy
gathered steam, causing our cautious position to hurt performance.
In Asia, we added to the Thai banks Kasikornbank and Siam
Commercial Bank. In Europe, we sold Hypo Real Estate Group after its
strong performance and reduced UniCredito Italiano.
Total 206.7
£m Insurance
Aviva 15.8
Marsh & McLennan 10.9
CNP Assurances 7.1
Prudential 6.3
Legal & General 6.1
American International Group 4.8
Protective Life 2.7
Old Republic International 2.1
Sampo 2.1
Allianz 2.1
Axa 1.9
Partnerre 1.7
Other Holdings (3) 2.1
Total 65.7
In life and pensions markets, investor confidence is starting to
recover but the regulatory climate remains difficult. However the
sector remains highly geared to rising equity markets, and dividend
cuts now seem less likely. The long term demographic arguments
remain supportive. During the year, we added to Aviva but sold the
European life assurers, Aegon and Banca Fideuram.
In the property and casualty area, premium rate increases are still a
feature, more so in liability than in property lines where conditions
are less buoyant. The adequacy of some claims reserves, such as those
for asbestos and environmental pollution in the US, remain in
question. During the year, we reduced AIG, reinvesting the proceeds
into Old Republic, a mid-sized US insurer with a modest valuation. In
Europe, we added to Allianz on its rights issue.

23
Real Estate
£m
The UK property sector performed strongly, largely due to the
proposed introduction of tax-efficient Real Estate Investment Trusts
(REITs). Such vehicles may sharply reduce the discount to net asset
value at which most property companies trade, including our largest
holding, Slough Estates. Strong investment demand was fuelled by
investors taking advantage of low interest rates, whilst on the
occupier side, rental demand for retail space was buoyant, and both
the industrial and West End office markets recovered. However, excess
supply is still depressing the City office market. In the US, a stronger
office rental market benefited our holding in Cousins Properties. In
Greater China, we bought Henderson Land and added to Sun Hung Kai
Properties, Cheung Kong and China Overseas Land & Investment, as
Hong Kong’s economy and property market recovered and China’s
surged ahead. The sale of the Hong Kong conglomerate, Hutchison
Whampoa, partly funded those purchases. In Singapore, we initiated a
holding in Keppel Land.
Slough Estates 13.8
Cheung Kong 4.8
Sun Hung Kai Properties 3.1
Cousins Properties 2.8
Henderson Land Development 2.4
Keppel Land 1.5
China Overseas Land 1.5
Other Holdings (1) 1.1
Total 31.0
Speciality and Other Finance
£m
Against a backdrop of improving economic and stock market prospects
for many Asian countries, we added to our holdings in Hong Kong
Exchanges & Clearing and in Singapore Exchange, the operators of the
securities and derivatives exchanges in these two important financial
centres. In Thailand, robust domestic demand is contributing to
strong growth in motor vehicle sales, and we added to our holding in
Siam Panich Leasing which specialises in motor vehicle financing.
Alliance Trust (Finance)
(“ATF”) 18.1
Alliance Trust Savings
(“ATS”) 10.5
Hong Kong Exchanges 3.7
Other Holdings (4) 3.2
Total 35.5
Information about ATF and ATS appears elsewhere in this report.

24
Portfolio Review
£m
Schroder Ventures
International 6.7
Candover Investments 6.1
Standard Life European
Private Equity 5.0
Aberforth Smaller Companies 3.7
UK Balanced Property Trust 3.6
F&C Latin American 2.7
Merrill Lynch World
Mining Trust 2.6
Eastern European Trust 2.1
Dunedin Buyout Fund 1.3
The Korea Fund 1.1
Falcon Investment Trust 1.0
Genesis Chile Fund 0.9
Martin Currie Pacific Trust 0.9
Electra Active Management 0.9
JP Morgan Fleming Japan 0.6
Taiwan Fund 0.6
Albany Ventures Fund 0.3
Central European Growth 0.2
JP Morgan Fleming Indian 0.2
Investment Companies
Our investment company holdings are held mainly to gain exposure to
markets or sectors which we feel are attractive and offer additional
diversification, but which we consider may be less efficient for us to
access directly. The holdings listed here, with the addition of the
holding of the preference stock of the Second Alliance Trust which is
shown in the Fixed Income section below, represent all the
investment companies in our portfolio. Some holdings are managed
on a sector basis, such as Merrill Lynch World Mining, with Resources,
and UK Balanced Property Trust, as part of the Real Estate sector.
Our major purchase was a convertible issue by Schroder Ventures,
part-funded by the sale of our holding in 3i. Korea Europe was
switched to the better valued Korea Fund. The UK smaller companies
trust, Throgmorton, was sold and a new holding in emerging markets
was Eastern European Trust. Our exposure to private equity expanded
with modest draw-downs for Dunedin Buyout and Albany Partners.
Total 40.5
Fixed Income
£m
HBOS 9.25% 6.8
National Westminster 9% 6.6
Abbey National 10.375% 5.5
Aviva 8.375% 3.8
General Accident 8.875% 3.2
HBOS 9.75% 2.7
Standard Chartered 7.375% 2.6
National Westminster 8.125% 1.6
Halifax 6.125% 0.9
Aviva 8.75% 0.9
Second Alliance Trust 4.5% 0.3
Total 34.9
Preference stocks
Our fixed income exposure is mainly concentrated in UK financial
preference stocks. Despite the general rise in interest rates, the
capital value of the portfolio increased by 4.4% over the year as
corporate spreads tightened in response to improving credit quality
trends, providing a total return in excess of 11%. This compares with
a total return of 5.2% on the MSCI Euro Sterling Corporate Index over
the same period.
Whilst our core holdings remained largely unchanged, we sold the
small residue of minor holdings during the year to focus on those
which are more significant.
We expect that 2004 will be more difficult in terms of capital return
against a background of higher short term interest rates in response
to the continuing economic recovery. However, the yield component
remains intact.

25
Investment Changes £m
Valuation
Valuation
31 January 31 January
2003 Purchases Sales Appreciation 2004
Resources and Basic Industries 236 32 (13) 42 297
Capital Goods 141 27 (30) 49 187
Consumer Goods & Products 229 27 (30) 27 253
Services 240 53 (37) 68 324
Financials and Fixed Income 287 29 (10) 68 374
Investment Companies 29 5 (5) 11 40
1,162 173 (125) 265 1,475
Classification of Investments
Investments %
* Convertibles represent 2.0% (2.4%)
North Rest of Total Total
UK Europe America Japan World 2004 2003
Resources Oil, Chemicals and Resources 9.0 0.9 1.6 0.1 1.3 12.9 13.0
and Basic Construction and Building Materials 2.2 0.2 0.0 0.1 0.5 3.0 2.1
Industries Utilities 2.1 0.1 0.9 0.0 1.2 4.3 4.3
13.3 1.2 2.5 0.2 3.0 20.2 19.4
Capital General Industrial 0.1 0.0 0.6 0.4 1.1 2.2 2.3
Goods Electronics and Engineering 1.1 0.6 1.5 2.2 0.0 5.4 5.0
Information Technology 0.4 0.7 3.6 0.1 0.3 5.1 4.4
1.6 1.3 5.7 2.7 1.4 12.7 11.7
Consumer
Beverages, Food,
Goods Household and Tobacco 3.9 0.3 1.1 0.2 0.8 6.3 6.8
& Products Healthcare 0.9 0.4 2.0 0.0 0.0 3.3 3.8
Pharmaceuticals 3.3 1.9 1.9 0.3 0.1 7.5 8.4
8.1 2.6 5.0 0.5 0.9 17.1 19.0
Services Retail 2.7 0.1 1.9 0.2 0.2 5.1 5.6
Brewers, Hotels and Leisure 1.5 0.3 0.2 0.0 0.2 2.2 1.5
Media 2.9 1.1 0.3 0.0 0.4 4.7 3.7
Transport 1.0 0.0 0.0 0.0 0.2 1.2 1.2
Support Services 2.3 0.0 0.9 0.2 0.6 4.0 2.9
Telecommunications Services 2.9 0.3 0.8 0.1 0.6 4.7 4.9
13.3 1.8 4.1 0.5 2.2 21.9 19.8
Financials Banks 8.8 2.1 1.6 0.0 1.5 14.0 12.9
Insurance 1.9 0.9 1.5 0.1 0.0 4.4 4.4
Real Estate 0.9 0.0 0.2 0.1 0.9 2.1 1.3
Speciality and Other Financial 1.9 0.0 0.0 0.1 0.4 2.4 2.7
13.5 3.0 3.3 0.3 2.8 22.9 21.3
Investment Companies 2.2 0.0 0.0 0.1 0.4 2.7 2.4
Total Equities* 52.0 9.9 20.6 4.3 10.7 97.5 93.6
Fixed Income 2.4 0.0 0.0 0.0 0.0 2.4 2.8
Total Investments 54.4 9.9 20.6 4.3 10.7 99.9 96.4
Other Net Assets (0.3) 0.1 0.2 0.1 0.0 0.1 3.6
Total Assets less Current Liabilities 2004 £1,476m 54.1 10.0 20.8 4.4 10.7 100.0
2003 £1,206m 52.9 12.5 23.0 4.6 7.0 100.0
The geographic classification of the investments is by the domicile of their primary listing, save for investment companies with a
specific regional focus. However, the companies in which we invest are exposed to currencies and economies throughout the world.

26
Alliance Trust Savings
Stockholding and
Stockholders
Review & Outlook
Assets held by ATS
for its Customers
ATS Savings Plans
Alliance Trust Savings (“ATS”) is the only financial
services company owned by UK investment trusts,
which designs, provides and administers a range of
wrapper products in-house. The profits of ATS
contribute to the earnings of the Group.
Stockholding and Stockholders
As the Chairman reports in his statement on page 5, nearly
17% of the Company’s ordinary stock is now held in the PEPs,
ISAs, Investment Plans and SIPPs (self-invested personal
pensions) which ATS provides and administers.
On the Company’s register, which at the year end had 25,387
members, the ATS nominee is but one name. It represents
nearly 28,000 different customers of ATS holding stock in the
Company.
Review & Outlook
Usually, the fiscal year end deadline for subscriptions to ISAs
and pensions acts as a key driver of cash inflows to ATS, and
noticeable in the run up to 5 April is an increase in lump sum
subscriptions, as investors, who prefer this means of saving to
regular direct debit subscription, make sure they maximise their
tax advantaged savings.
The first six months of the year saw a complete contrast to this
norm in terms of investor activity. ATS felt a general slow down
in activity, as the consequences of lack of confidence in the
equity market, amongst some savers, impacted on its cash
flows. By the mid year point, net inflows were 22.5% down on
the equivalent period in the previous year.
It was encouraging, then, to see investor confidence returning
in the second half of the year. This was evidenced by a strong
recovery in net cash flows, which by the year end totalled
£130m, down by only 4.4% on last year.
Assets held by
ATS for its
Customers
£m
Alliance Trust 221
Second Alliance Trust 109
Other Investment
Companies 377
Equities and
other securities 417
Cash 69
Total 1,193
Figures as at 31 January 2004

27
During the year, ATS consolidated its position as a leading
provider of wrapper products in the investment trust
marketplace. The investment choice which is available in the
Select plans is a major factor in this process, as ATS customers
are able to choose to invest in nearly all UK listed securities,
including over 400 investment companies.
Some exchange traded funds were added to the available choice
in the Select plans during the year and the range of open
ended investment company bond funds broadened.
Added choice is a key factor in attracting the increasingly
important transfer business. From the customer’s point of view,
the benefits of consolidation with a single provider are most
apparent in the PEP marketplace. Many individuals continue to
hold substantial, and even the greater part of, their portfolios
within their PEP wrappers, even though ISAs have been
available for all new subscriptions since April 1999. Although
the PEP is a naturally declining product since it has been
closed to new subscriptions, ATS continues to receive a
significant number of transfers into the Select PEP and a
healthy inflow of cash from this business. In 2003, some other
PEP providers withdrew from the PEP marketplace and this
resulted in additional business. Over the year, the total net
inflow into the Select PEP was over £25m.
Net inflows into the Select Investment Plan grew strongly by
over 72% to nearly £30m. Transfers of complete portfolios into
a Select Investment Plan, for safekeeping and easy
administration, is an increasingly important part of the ATS
business and, during the year, £11.8m was received in the form
of in specie transfers. Another development is the growth in
the saving for children market and now over 50% of all new
Select Investment Plans are opened on behalf of children.
ATS Ten Year Growth to 31 January 2004
Customer
Numbers
40000
35000
30000
25000
20000
15000
10000
5000
Customer
Numbers
Customer
Assets
0
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Pension ISA PEP Investment Plan
Customer
Assets £m
1200
1000
800
600
400
200
Source: Internal
presently exclude the CTF for children born before September
2002. We will continue to monitor these proposals before
making any decision to provide a CTF.
Over the year, the number of customers holding Select Pensions
grew by 12%. We view pension products as continuing to have
considerable potential for the future and, in particular, see
further opportunity in providing pension wrappers for third parties.
The outlook for ATS in a marketplace which is changing rapidly
is healthy, as more transparent savings vehicles should become
the preferred choice for many individuals. This will bring
challenge too in the range of products ATS provides and access
to them.
Saving for children has recently received more prominence with
the publication of the technical details for the Child Trust Fund
(CTF). Although subscription levels into the product are low,
the potential market is very large, even though the proposals
ATS Savings Plans as at 31 January 2004
Customers
† Some investors have more than one Plan.
Customer Assets
Numbers Change £m Change
over one year
over one year
Investment Plan 9,852 7% 157 57%
PEP 18,772 (2%) 682 26%
ISA 16,881 5% 231 61%
SIPP 4,341 12% 123 61%
Total 36,215† 2% 1,193 39%

28
Corporate Governance Report
Corporate Structure
The Board
Accountability and Audit
Compliance with the
Code of Best Practice
Directors’ Biographical
Details
In this section we report to you on our structure and
corporate governance principles and processes. The
statement regarding compliance with the Combined
Code on Corporate Governance, as required by the
rules of the UK Listing Authority, is on page 34.
Corporate Structure
Investment Trust Status
The Alliance Trust PLC is an investment company. After each
accounting period it seeks approval as an investment trust
under the Taxes Acts from the Inland Revenue. Since receiving
the last approval, which was for the year ended 31 January
2003, the Company has conducted its affairs to enable it to
continue to seek approval.
Structure
The Company has subsidiary companies, principally Alliance
Trust Savings Limited (“ATS”) and Alliance Trust (Finance)
Limited (“ATF”). ATS, which is authorised and regulated by the
Financial Services Authority, provides savings plans in the form
of PEPs, ISAs, SIPPs and Investment Plans. ATF carries out the
administration, as agent, of lease finance portfolios for third
parties and acts as agent for the acquisition of supplies
required by the Group and The Second Alliance Trust PLC (“the
Second Alliance Trust”).
The Company operates in parallel with the Second Alliance
Trust. This arrangement goes back to just after the end of the
First World War when another, smaller, Dundee company, then
called the Western & Hawaiian Investment Company, came to a
mutually beneficial arrangement with the Company to share
office, administration and staff costs. In 1923 this, smaller,
company changed its name to the Second Alliance Trust. Since
then, and in order to avoid conflicts of interest, the investment
objectives and portfolios of both companies have been
substantially aligned and the directors of both companies are
the same individuals. Should any potential conflict of interest
arise, each company takes independent advice.
Together, the Alliance Trust and the Second Alliance Trust own
ATS and ATF, with the Alliance Trust having a 75% shareholding
in both companies.

29
The Board
The Alliance Trust has a board of executive and non-executive
directors who are collectively responsible for the Group. The
board’s main duties are:
• To set out the objectives of the Group. These are found on
page 3.
• To provide entrepreneurial leadership within a framework of
prudent and effective controls which enables risk to be
assessed and managed. How risk is managed is narrated on
pages 33 to 34.
• To set the standards and values of the Group and ensure
that our obligations to our stockholders and others are
understood and met.
Executive Directors
Alan Harden Chief Executive
David Deards Finance Director
Sheila Ruckley Director of Risk Management
Alan Young Investment Director
Gavin Suggett served as a director and Chief Executive until
31 December 2003, when he retired from both offices. Alan
Harden became a director and Chief Executive on 1 January
2004. Gavin Suggett continues to be employed by the Company
in a consultative capacity until his retirement from the
Company in May 2004.
The executive directors are full time salaried employees. The
Chief Executive is responsible for the day-to-day running of the
Group and in doing this he delegates responsibilities to the
other executive directors and other managers.
Non-executive Directors
Bruce Johnston Chairman
William Berry Senior Independent Director
William Jack Chairman of the Audit Committee
Lesley Knox Chairman of the Nomination Committee
(from 1 February 2004)
Christopher
Masters Chairman of the Remuneration Committee
The non-executive directors, who form a majority on the board,
are not salaried employees. They receive fees in consideration
for carrying out their duties.
As well as those collective duties which they have as members
of the board, the non-executive directors scrutinise the
performance of the executive, monitor the integrity of the
financial information, and satisfy themselves that financial
controls and systems of risk management of the Group are
robust and defensible. The non-executive directors, through the
Remuneration Committee, also fix the remuneration of the
executive directors and, through the Nomination Committee, are
primarily responsible for succession planning.
There is a division of responsibility between the Chairman,
whose duty is to run the board effectively, and that of the Chief
Executive, who is charged with running the business of the
Group effectively. This separation of roles is documented in
their respective job descriptions which are agreed by the board
as a whole.
The Senior Independent Director is the director to whom
stockholders should turn if they have issues which they consider
are not being dealt with by the Chairman or the Chief Executive.
All the non-executives directors serve on committees of the
board. The main committees are the Nomination Committee
(page 30), the Remuneration Committee (page 30 and pages
36-39) and the Audit Committee (page 33).
At the conclusion of the Annual General Meeting on 30 April
2004, Bruce Johnston will retire as a director. He will be
succeeded in the Chairmanship of the Company by Lesley Knox.
In order to maintain the majority of non-executive directors on
the board, the directors propose to make another
appointment shortly.

30
Corporate Governance Report
Nomination Committee and Appointments
During the year under review, there was no standing Nomination
Committee, but committees of the board were formed for the
recruitment of a new Chief Executive and for the nomination of
a successor to Bruce Johnston as Chairman. It is the Company’s
policy that the Chairman of the Company does not serve on any
Nomination Committee dealing with the nomination of his
successor, nor does any director proposed to succeed to
such office.
The committee which considered the choice of Chief Executive
comprised Lesley Knox (Chairman), Bruce Johnston, Christopher
Masters and Gavin Suggett. That considering the appointment
of a new chairman comprised William Berry (Chairman), William
Jack, Christopher Masters and Gavin Suggett.
Both these committees determined the process which was
followed for each nomination and each process was tailored
according to the appointment under consideration. The executive
directors were invited to give their views to the Nomination
Committee and the decision on the appointment of any proposed
director or of a chairman of the board was made by the board as
a whole, taking into account the reports and recommendations
made to it by the relevant Nomination Committee.
A standing Nomination Committee has subsequently been
constituted and this will deal with all future appointments. As
at the date of reporting, the membership of this committee is
as noted on page 35.
Information and Professional Development
All directors receive a formal induction to the affairs and
business of the Group, which may include, where appropriate,
meeting both with major institutional stockholders and private
stockholders. Training and professional development courses are
also made available as required.
The Chairman ensures that all directors receive accurate, timely
and clear information for board meetings and, with the
company secretary, that good information inflows are
maintained between the management and the board.
Independence of Directors
The board has carefully considered the guidance on
independence of non-executive directors including the principle
that independence is evidenced by an individual being
independent of mind, character and judgement. Independence
can be present regardless of any relationship or circumstance
which may give rise to a presumption that it is absent, such as
length of service on the board for a longer period than is
currently recommended.
The board considers that all of the non-executive directors,
including William Berry who has been a director for more than
nine years, are indeed independent of mind, character and
judgement and satisfy the independence test.
Meetings
The directors meet formally on a regular basis. Ad hoc meetings
may also be convened, and the committees of the board meet
as required to discharge their specific duties.
Decision Making
Delegation to the executive is necessary for the efficient
running of the Group. While the Chief Executive and his team
are responsible for operational matters generally, there are some
issues which are specifically reserved for decision of the board
as a whole, whether or not they are operational. This may be
because of their strategic importance (such as borrowings or
commencing a new business), their significance (such as
changes in the Group’s management structure), or their
reputational sensitivity (such as litigation).
Audit Committee
Please refer to page 33.
Remuneration Committee
The Remuneration Committee fixes, on behalf of the Board, the
remuneration of the executive directors and makes
recommendations to the board on the framework of executive
remuneration in the Group. The Committee members are
Christopher Masters (Chairman since October 2003), William Berry
(Chairman until October 2003), William Jack and Lesley Knox.
For more detail on the remuneration of directors and the role of
the Remuneration Committee, please refer to the Directors’
Remuneration Report on pages 36 to 39.
Executive Committee
An executive committee, appointed by the Chief Executive,
considers and assists in day-to-day matters concerning the
running of the Group. The committee comprises all the
executive directors and
Neil Anderson ATS Head of Operations
Colin Beveridge Chief Investment Manager
Kevin Dann ATS Managing Director
Ian Goddard Company Secretary

31
Material Interests
During the year, no director had any material interest in any
contract, being a contract of significance, with the Company or
any subsidiary company or was connected to any adviser or
supplier who had such an interest.
Re-election of Directors
All appointments to the board are subject to approval by the
stockholders at the Annual General Meeting (“AGM”) next
following the appointment. Additional to the requirements of
the Articles of Association, the board has resolved that all
directors subject themselves to re-election by the stockholders
at least every three years.
At the AGM on 30 April 2004, a resolution incorporating this
principle into the Articles of Association will be put to the
stockholders for approval. At the meeting, Alan Harden will
stand for election, this being the first Annual General Meeting
since his appointment. Sheila Ruckley, William Berry and
William Jack will retire by rotation and stand for re-election.
Alan Harden and Sheila Ruckley have contracts of service with
the Company which are terminable by the Company on one
year’s notice. William Berry and William Jack do not have
service contracts.
Biographical details of the directors are on page 35.
Stockholders are referred to the Notice of the AGM, which is a
separate document from this report and which gives more
information about the directors to be re-elected. The notice
also includes a proposal for the Company to be given power to
take out liability insurance for directors and officers, which is
not presently held.
Directors’ Stockholdings
All directors must hold at least 200 ordinary stock units. Details
of their holdings are shown in the table below.
No director has any interest in the Company’s preference stocks
or debenture stock. No director, nor any member of any director’s
immediate family, has been granted options to subscribe for
stock or debentures in the Company, or in any Group company.
Directors interests
(ordinary stock units of 25p)
As at 1 February 2003
*or date of appointment
As at 31 January 2004
Acquired between
31 January 2004 and
11 March 2004
Non- Non- Non-
Beneficial Beneficial Beneficial Beneficial Beneficial Beneficial
Bruce Johnston 2,134 15,186 2,192 15,186 - -
Alan Harden 76* - 372 - 153 -
William Berry 2,212 500 2,913 500 - -
David Deards 1,039 - 1,200 - 10 -
William Jack 1,000 - 1,000 - - -
Lesley Knox 511 - 770 - 32 -
Christopher Masters 494 - 503 - - -
Sheila Ruckley 1,587 - 1,840 - 10 -
Alan Young 2,630 - 2,817 - 10 -
Acquisition of stock between 31 January 2004 and 11 March 2004 has been pursuant to standing instructions
through plans provided by ATS, and the All-Employee Share Incentive Plan.

32
Corporate Governance Report
Relationships with Stockholders
It is the board’s collective responsibility to ensure that a
meaningful dialogue is maintained with stockholders.
As well as meetings with institutional stockholders, which are
largely conducted by the Chairman, Chief Executive and the
Finance Director, the executive directors meet with private
stockholders at investor seminars which are held throughout
the UK. It is customary for the Chairman, or one or more of the
other non-executive directors, also to attend these seminars.
The Investor Relations programme also includes meetings with
stockbrokers and investment analysts.
The AGM is a forum for all those who hold stock in the Company
and we encourage attendance and participation by all stockholders,
including those who hold their stock through nominees.
All beneficial owners of stock through ATS are given the
opportunity, using a letter of direction, and at no charge, to
instruct a proxy vote to be cast for them. Whilst company law
does not provide for such beneficial owners to vote on a show
of hands, those attending the AGM are given a “courtesy show
of hands vote” at the meeting, in order that the directors can
be made aware of how they would vote on a show of hands, if
so allowed by company law.
We are required to report to you which stockholders have told
us that they own more than 3% of our ordinary stock. Where
the stock is in a nominee for beneficial owners who retain
voting rights, the holding must be notified to the Company
when it reaches 10% of the ordinary stock.
Below we give a table which shows who has notified us of a 3%
or more holding. It also states the percentage of stock held by
the nominee for the ATS customers who retain voting rights.
Ordinary stock units
notified as at 11 March 2004
Alliance Trust Savings Limited 8,514,626 (16.89%)
DC Thomson & Co Ltd 3,241,503 (6.43%)
The Standard Life
Assurance Company 1,739,553 (3.45%)
Legal & General Investment
Management Company 1,518,366 (3.01%)
Political and Charitable Donations
Corporate Social Responsibility
In carrying out our activities and in our relationships with our
employees, suppliers and community, we aim to conduct
ourselves responsibly, ethically and fairly and in a manner
which we ourselves would like to be treated.
Payment of Creditors
We always try to achieve favourable terms when buying
supplies. Contracts and payment terms are carefully scrutinised
and we pay in accordance with the contract which is agreed,
which may be the suppliers’ own terms. Investment purchases
are settled in accordance with the terms of the exchanges on
which the investments are listed. The Group has not adopted
any code or standard on payment practice.
The Group anticipates no change in its purchasing practices in
the current financial year.
At 31 January 2004 the Company had no trade creditors. ATS,
its principal operating subsidiary, had trade creditors equivalent
to 20 (13) days of average purchases.
Green Disclosures
In carrying out our activities over the last year, our UK
greenhouse gas emissions by reason of the Group’s activities
(office heat and power requirements and employee travel),
calculated in accordance with reporting guidelines issued by the
Department of Environment, Transport and the Regions, amounted
to 123 (120) tonnes of carbon dioxide. This is the equivalent of
operating 10.9 (10.7) three bar electric fires for a year.
We are often asked whether the investment managers take
environmental factors into consideration when making
investments. Information is given on page 9.
Voting
It is the Company's policy to exercise, wherever practical, its
vote at meetings of companies in which it owns shares. Any
proposal to vote against the recommendations of the board of
the company in which the shares are held requires the approval
of an executive director. Decisions to vote against such
recommendations are reported to the board. More information is
given on page 9, together with information on social
responsibility in the context of investment decisions.
We do not make political or charitable donations. We are
members of ProShare, which has charitable status, because it
promotes the rights of private stockholders and we use its
connections and expertise. We paid £6,494 to ProShare this
year, and the same last year.

33
Accountability and Audit
Directors’ Responsibility for the Accounts
The directors are required by law to prepare financial
statements which give a true and fair view of the state of
affairs of the Company and the Group at the end of the
financial year and of the revenue and cash flows for the year.
In addition, the directors are responsible for ensuring that
adequate accounting records are maintained, for safeguarding
the assets of the Group and for taking reasonable steps for the
prevention and detection of fraud or other irregularities.
The Company and the Group have, in the opinion of the
directors, adequate resources to continue operation as a going
concern for the foreseeable future, and the financial statements
of the Company and the Group for the year ended 31 January
2004 have been prepared on that basis.
The directors confirm that suitable accounting policies,
consistently applied and supported by reasonable and prudent
judgements and estimates, have been used in their preparation
and that applicable accounting standards have been followed.
Audit Committee
The Audit Committee's duties include reviewing and reporting to
the board on:
• The annual and interim financial statements and the
accounts, together with the form of proposed
announcements and reports relating to the Company's
financial performance.
• Compliance with banking and financial services legislation.
• The integrity and effectiveness of accounting and financial
controls and the system of internal control, including the
process for assessing and managing risk.
The Committee has a specific function to review the scope and
effectiveness of the audits which are carried out by the external
and internal auditors. It reviews the independence and
objectivity of the external auditors, supervises the function of
the internal audit and facilitates the work of both the external
and internal auditors. During the year, the Committee put the
external audit out to tender. The result of the tender process
was that the stockholders should be asked to reappoint KPMG
Audit Plc as auditor.
The Audit Committee is also the forum where any member of
staff may, in confidence, raise matters of concern about
possible improprieties in matters such as financial reporting,
and it has the power to investigate any matters raised.
The committee members are William Jack (Chairman), William
Berry, Lesley Knox and Christopher Masters.
Risk Management and Internal Control
It is the responsibility of the board to understand the nature
and extent of the risks facing the Group. In so doing, the board
is mindful that risk must be considered in the context of the
objective and activities of the Group. Risk is inherent in the
opportunities which present themselves, and are sought out, in
the attainment of what we seek to provide for stockholders.
In considering risk and in the formulation of its risk policies,
the board looks at the level of risk which it considers
acceptable to bear in each risk category it identifies as being
relevant to the activities of the Group. In assessing the level of
risk, the board looks at the probability of the risks concerned
materialising and their potential impact. A process is put in
place to evaluate and manage risks within a framework which
takes into account the costs of operating particular controls
relative to the benefit obtained. This process is a continuum.
Thus the balance between risk and return is managed in a
prudent manner, which does not conflict with the objectives of
the Group or compromise compliance with statute and regulatory
provision or adherence to good business management.
In January 2004, the board charged one of the executive
directors, Sheila Ruckley, with responsibility for risk
management in the organisation.
Central to the risk management framework is nurturing a culture
which promotes honesty and integrity and favours compliance
as a positive aid to business. Embedding an understanding of
risk means that staff take responsibility for the management of
risk in the areas for which they are responsible. This is done in
the context of the board’s risk policies and an agreed policy for
the risk management processes in each area.
A sound system of internal control fits into the framework of
risk management. The board confirms that procedures which
accord with the guidance published in 1999 (the Turnbull
guidance) for compliance with principle D of the Combined Code
(internal control) have been in place for the year under review
and continue to be in place.

34
Corporate Governance Report
These procedures include a review by the board, on at least an
annual basis, of the scope and effectiveness of the system for
internal control. This includes a review of financial, operational
and compliance controls as well as of significant business risks
and any changes in the nature and extent of those risks since
the last review.
No system of internal control can give an absolute assurance
misstatement or loss. It should prevent or detect areas of
shortcoming and minimise the risk of loss through
incompetence, neglect of duty, mistake or fraud.
The main control mechanisms in place include:-
• Separation of the roles of Chairman and Chief Executive on
the board.
• Strong non-executive directors and a robust Audit Committee.
• Clear departmental structures, backed up by interdepartmental
support functions.
• Clear authorisation limits.
• Segregation of duties such that no one person can control
or influence all aspects of one function, or carry out and
settle any transaction.
• A rolling internal audit and compliance monitoring programme
with reports on matters reviewed given directly to the Chief
Executive, Chairman and Chairman of the Audit Committee.
Investment Risk and Financial Instruments
Risk is inherent in all forms of investment which aim to give a
financial return. We seek to manage this risk primarily through
a judicious choice of investments diversified across different
business sectors and economies. Notwithstanding
diversification, in the short-term the aggregate valuation of
these investments is subject to considerable fluctuation in
response to changes in, for example, inflation, interest rates,
currencies and market sentiment. Cumulative effects of dividend
income and its reinvestment, along with long term growth can
compensate for short term fluctuations in capital value.
Compliance with the Code
of Best Practice
Pages 28-35 of this report, together with the directors
remuneration report on pages 36-39, disclose the application by
the Company of the Combined Code on Corporate Governance,
as required by the UK Listing Authority.
The Combined Code which applies to the Company for the
reporting year to 31 January 2004 is now defined by the UK
Listing Authority as the “Hampel Code”.
The board reports that it has complied with the Hampel Code
except in two matters:
In the year to 31 January 2004, performance related pay did
not form a substantial part of the executive directors’
remuneration. This is explained in the Directors’ Remuneration
Report on page 37.
During the year there was no standing Nomination Committee.
As explained on page 30, two appointments were considered for
which separate Nomination Committees were appointed. The
membership of each committee was tailored to the post in
question so that the most relevant board experience was
brought to bear.
In July 2003, revisions to the Hampel Code were announced by
the UK Listing Authority. The revised Code, defined as the
”2003 FRC Code” applies for reporting periods which commence
on or after 1 November 2003. Accordingly the board will report
on its compliance with the 2003 FRC Code in its report for the
year ended 31 January 2005.
By order of the Board
Ian Goddard, Secretary
Dundee, 22 March 2004
The Company does not seek to enhance returns by engaging in
trading activity itself, although it invests in companies that
trade. The Company may borrow and may make use of financial
instruments and derivatives in order to enhance returns or to
mitigate risks. Borrowing, financial instruments and derivatives
carry their own risks, which must be managed effectively.
During the last financial year, we did not borrow or use any
financial instruments or derivatives.

Directors
35
Bruce W M Johnston (Chairman) CA (65) Joined the board 1991; appointed Chairman 1996 Pictured centre
Bruce Johnston was a partner in the chartered accountancy firm, Arthur Young (now Ernst & Young), between 1970 and 1986, where he
concentrated on audit and advisory work for companies and private clients. He then moved to the commercial sector and was, until 1996,
Executive Chairman of City Centre Restaurants plc, where he combined general management with responsibility for finance and investor relations.
Other directorships include Mid Wynd International Investment Trust PLC.
Non-Executive Directors From left to right
William Berry MA LLB WS (64)
Joined the board 1994; Senior Independent Director ■●
William Berry is a solicitor and the former chairman of Murray Beith
Murray, an Edinburgh Law firm which has an important investment
presence, managing and administering funds for many private clients. He
is Senior Governor of St Andrews University and was formerly chairman of
Scottish Life Assurance Company.
Other directorships include Fleming Continental European Investment Trust
PLC and The Scottish American Investment Company PLC.
William H Jack (59)
Joined the board 2000; Chairman of the Audit Committee ■● ▲
William Jack joined the General Accident Fire & Life Assurance Company in
1973, and was the managing director of GA Life (subsequently CGU Life),
with the responsibility for the UK Life and unit trust business, from 1991
to 2000.
Other directorships include Skipton Group Holdings.
Lesley M S Knox (50)
Joined the board 2001; Chairman of the Nomination Committee ■ ● ▲
Lesley Knox qualified as a lawyer and worked in the UK and USA advising
companies on a range of commercial matters. Subsequently she worked as
a corporate finance adviser first with Kleinwort Benson where in 1996 she
became a group director and then as a founder director of British Linen
Advisers. She was also Head of Institutional Asset Management at
Kleinwort Benson Investment Management which provided investment
services to clients world wide.
Other directorships include Hays PLC, HMV Group PLC and MFI Furniture
Group PLC.
Christopher Masters CBE FRSE (56)
Joined the board 2002; Chairman of the Remuneration Committee ■● ▲
Christopher Masters took his doctorate in Chemistry at Leeds University and
worked for Shell Research BV in the Netherlands and then Shell Chemicals
in the UK. He joined Christian Salvesen as business development manager
before becoming director of planning for their US operation and then Chief
Executive from 1989 to 1997. He was then appointed Executive Chairman
of Aggreko PLC, a post he held until January 2002. He chairs the Scottish
Higher Education Funding Council and the Festival City Theatres’ Trust.
Other directorships include British Assets Trust PLC and John Wood
Group PLC.
Executive Directors From left to right
Alan J Harden (46) ▲
Joined the Company 2003; Chief Executive 2004
Alan Harden started his career in the investment industry in 1978 with Abbey
Life and JBI in the UK, Europe and Cyprus; before joining Wardley (part of
HSBC) in 1984, running the asset management department in Cyprus, before
moving to Dubai UAE, and then to Hong Kong as senior investment manager.
In 1990 he joined Standard Chartered Bank as Managing Director of Scimitar
Asset Management based in Singapore, responsible for activities and assets in
South East Asia. In 1994 he became Global Head of Investment Services,
leading Standard Chartered to become the largest fund distributor in Asia. In
2000 he moved to Citigroup, and from his base in Japan, was head of the
asset management business in the Asia Pacific region and a member of the
Global Executive Committee. He joined the Alliance Trust in November 2003
and was appointed to the Board on 1 January 2004, the date on which he
took up the responsibilities of Chief Executive.
Alan M W Young MA LLB (57)
Joined the Company 1986; appointed to the board 1992
Alan Young read law at Edinburgh and worked in London at Buckmaster &
Moore, stockbrokers, before joining the investment department at Gartmore
as an analyst and fund manager. He became a director of Gartmore’s pension
and investment trust management arm in 1983. On joining the Alliance
Trust he managed the UK and European portfolios before becoming the
director responsible for investment policy.
Sheila M Ruckley MA LLB DLP (54)
Joined the Company 1988; appointed to the board 2000
Sheila Ruckley studied history and philosophy in the UK and USA before
qualifying as a solicitor. After joining the Alliance Trusts she became
secretary of the Company and compliance officer of the savings business,
before becoming responsible for the introduction of the Select Pension.
Initially appointed a director to develop the investor relations function
within the organisation, she was, in January 2004, appointed Director of
Risk Management, retaining responsibility for investor relations.
David A Deards BA ACA (44)
Joined the Company and the board 2003
David Deards read zoology at Oxford and qualified as a chartered accountant
with Arthur Young (now Ernst & Young) before joining Ansbacher & Co where
he gained considerable experience in corporate finance and banking and
investment product development, and became a director of Ansbacher & Co
in 1995. He joined the Alliance Trust as Finance Director in 2003.
■ Member of the Remuneration Committee ● Member of the Audit Committee ▲ Member of the standing Nomination Committee
All are also Directors of Alliance Trust Savings Limited and The Second Alliance Trust PLC

36
Directors’ Remuneration Report
Remuneration Framework
Non-Executive Directors
Executive Directors
Performance Related
Remuneration
Remuneration and
Pension Entitlement
Company Performance
Graph
Audit Statement
In this section, we report to you on the remuneration
of the directors in the year to 31 January 2004. At
the AGM, the stockholders will be asked to approve
this report. The vote is advisory and will not affect
the remuneration which has been paid.
Remuneration Framework
For all directors, the Company's policy is that remuneration
should be set at a level to attract and retain individuals of high
calibre, and that it should reflect their respective
responsibilities. All directors are appointed on the basis that
they are competent to do the job, motivated by the alignment
of their own interest with that of the stockholders, and have
the potential to deliver the objectives of the Group.
To understand the framework for paying directors, we must look
at the non-executive and executive directors separately. This is
because they have different roles on the board, as explained on
page 29.
Non-executive Directors
Non-executive directors are not salaried employees. They do not
have employment contracts but written terms of appointment,
and they receive fees. It is the Company’s policy that this
remuneration structure should continue for the following
financial year.
The maximum aggregate amount of fees which can be paid to
the non-executives each year has to be approved by the
stockholders at a general meeting, such as an AGM, in accordance
with the Articles of Association. It is currently £120,000.
Within this aggregate, the board as a whole determines what
the Chairman and each of the other non-executives should
receive. No individual plays a part in the decision on his or her
own remuneration. Independent consultants advise on issues of
comparability, taking into account the location of the Group
and the nature of the duties to be performed.
The fees paid to the individual non-executive directors are set
out in the table on the next page.

37
Fees Paid to
Non-executive Directors † £
Group Group Company Company
2004 2003 2004 2003
Bruce Johnston (Chairman) 36,000 30,000 36,000 22,500
William Berry 18,000 15,250 18,000 11,500
William Jack 18,000 15,250 18,000 11,500
Lesley Knox* 18,000 15,250 18,000 11,500
Christopher Masters (appointed November 2002) 18,000 3,219 18,000 2,428
W Nelson Roberston (retired April 2002) - 3,643 - 2,747
108,000 82,612 108,000 62,175
† Non-executive directors also receive fees from the Second Alliance Trust for services as directors of
that company.
* Until December 2002 fees in respect of Lesley Knox’s services were paid to British Linen Advisers.
From January 2003 the fees were paid to her personally. British Linen Advisers did not provide
services to any company in the Group.
Executive Directors
Executive directors are salaried employees. They do not receive
any fees as directors. The level of their salaries is not laid down
in the Articles of Association, but is determined by the
Remuneration Committee of the board, which is composed
entirely of the independent non-executive directors and is
chaired by Christopher Masters. No director is involved in
deciding his or her own remuneration.
The Remuneration Committee takes advice from independent
consultants on the comparability of executive directors’ salaries.
Such advice may include advice on pension and remuneration
issues generally as they affect all staff of the Group and in 2003
was provided by Watson Wyatt LLP.
Each of the executive directors has a contract of employment.
These contracts are available for inspection at the Company’s
registered office during normal business hours, as well as prior
to and at the AGM.
Some features of the executives’ contracts are:
• They are terminable on one year’s notice by the Company
and on six months’ notice by the director.
• Alan Harden’s contract contains express mitigation provisions
should his contract be terminated on shorter notice.
• The other executive directors have acknowledged in writing
that they have a duty to mitigate loss in the event of early
termination and the Remuneration Committee has a
responsibility to take into account this duty before deciding
upon compensation.
• All executive directors must retire at age 60.
The remuneration packages of the executive directors are
common to all employees and comprise:
• Salary, which is set at a level to reflect individual
responsibility and performance and is reviewed annually.
• Defined benefit pension arrangements after six
months service.
• Death in service insurance and, after six months service,
disability insurance. These are insured benefits which have
no value on leaving service.
• Private health care which extends to any spouse and any
unmarried children under 25.
• After six months’ service, ordinary stock units in the Company
awarded in terms of the All-Employee Share Incentive Plan.
The maximum allocation is stock to the value of £3,000 in
any one year. Performance targets are set annually.
Performance Related Remuneration
The Company does not currently comply with that part of the
Combined Code on Corporate Governance which states that a
significant proportion of the remuneration package for executive
directors should link rewards to corporate and individual
performance. Although the board considers that the
remuneration packages, disclosed above and in the tables on
the next page, have provided sufficient incentive to the
relevant directors to perform at the highest level, it has
requested that the Remuneration Committee undertakes a
review of directors' remuneration and benefits, including the
present policy on performance related remuneration.

38
Directors’ Remuneration Report
Remuneration and Pension Entitlement
Remuneration Received
by Executive Directors † £
(Group and Company)
Date of Contract
Salary
2004
Taxable
Benefits
2004
Share
Incentive
Plan
Total
2004
Total
2003
Alan Harden (appointed 1 January 2004) 15 October 2003 14,688 47 - 14,735 -
David Deards (appointed 1 January 2003) 22 November 2002 97,500 551 512 98,563 8,169
Sheila Ruckley 31 January 2001 85,875 655 1,024 87,554 85,307
Gavin Suggett* (retired 31 December 2003) 6 November 1987 140,187 751 938 141,876 150,307
Alan Young 6 November 1987 123,500 819 1,024 125,343 123,432
461,750 2,823 3,498 468,071 367,215
† Executive directors are also remunerated by the
Second Alliance Trust.
* Highest paid director during the year.
Executive Directors’ Pensions £
Accumulated Total Accrued
Inflation Adjusted
Pension per Annum Transfer Values Increase in Year
31 January
2003
31 January
2004
31 January
2003
Changes
31 January
2004
Accrued
Pension
Transfer
Value
Alan Harden (appointed 1 January 2004) - - - - - - -
David Deards (appointed 1 January 2003) - 1,340 - 10,291 10,291 - -
Sheila Ruckley 20,123 22,065 219,751 72,616 292,367 1,600 21,200
Gavin Suggett (retired 31 December 2003) 95,168 101,177 1,623,614 304,348 1,927,962 4,392 83,691
Alan Young 49,420 53,167 694,327 157,207 851,534 2,906 46,543
The transfer values of the accrued pensions and the transfer
values of the inflation adjusted increases in the accrued
pensions in the period have been calculated by the actuary of
the scheme in accordance with actuarial guidance note GN11.
The changes in the transfer values between 31 January 2003
and 31 January 2004 are significantly influenced by the
assumptions underlying their calculation and market conditions.
The disclosure of the increases in the inflation adjusted accrued
pensions and the transfer values of those increases is a
requirement of the UK Listing Authority. The other disclosures
are required by the Companies Act 1985.
Gavin Suggett was credited with 4 years’ pensionable service in
November 1973. 5 years were added in February 1983 when the
pensionable service of scheme members was adjusted to equalise
male and female retirement ages at 60. Both enhancements
accrue evenly over the period to his 60th birthday.
Alan Young was credited with 5 years’ pensionable service in
August 1988. It is funded as to 2 years 1 month by a transfer
in from a scheme connected with previous employment and 2
years 11 months by a discretionary increase. His service is also
being enhanced by six months in respect of each actual year of
service over a period of 10 years ending on his 60th birthday.
His pensionable salary, like that of Sheila Ruckley, is not
subject to the earnings cap as they both joined the pension
scheme before June 1989. This also applies to Gavin Suggett.
Alan Harden, appointed on 1 January 2004, becomes eligible to
join the pension scheme on 1 May 2004. His pension benefits
will be funded on the basis of a 1/30th accrual rate, which is
twice that of the normal accrual rate for scheme members.

39
Company Performance Graph
We are required to show a graph of the performance of the
Company compared to a broad equity market index. The graph
below compares the total return on the Company’s ordinary
stock to the FTSE All-Share Index.
The Company does not seek to track the FTSE All-Share Index. It
is not used as a benchmark, nor is the directors’ performance
measured against it. It has been chosen to comply with the
requirement because it is a measure which we consider to be
well known to our stockholders. In looking at the stock price
total return it has to be borne in mind that the Company’s
assets will not necessarily perform in line with the Index.
Audit statement
The tables on page 37 and 38, together with the footnotes
relating to them, have been audited by the Company’s auditor
whose report is on page 40.
By order of the Board
Ian Goddard, Secretary
Dundee, 22 March 2004
The FTSE All-Share Index is a UK equity index, whereas a
substantial part of the Company's assets are invested overseas
and may not be fully invested in equities. In addition, the
return on the Company's ordinary stock is partly determined by
supply and demand for the stock on the stock market. This
return may not equate to the return achieved by the Company
on its assets.
Company Performance Graph
31 January 1999 to 31 January 2004
120
110
100
Total Return on
ordinary stock
90
80
70
Total Return on the
FTSE All-Share Index
60
31 Jan
1999
31 Jan
2000
31 Jan
2001
31 Jan
2002
31 Jan
2003
31 Jan
2004
Source: Thomson Financial Datastream
The total return on ordinary stock is the theoretical growth in value
over five years, assuming that gross dividends are fully reinvested, and
ignoring re-investment charges. The total return on the index is the
theoretical aggregate in value of the index constituents.

40
Report of the Auditor
Independent Auditor’s Report to the
Members of The Alliance Trust PLC
We have audited the financial statements on pages 41 to 51.
We have also audited the information in the directors’
remuneration report that is described as having been audited.
This report is made solely to the Company’s members, as a
body, in accordance with section 235 of the Companies Act
1985. Our audit work has been undertaken so that we might
state to the Company’s members those matters we are required
to state to them in an auditor’s report and for no other
purpose. To the fullest extent permitted by law, we do not
accept or assume responsibility to anyone other than the
Company and the Company’s members as a body for our audit
work, for this report, or for the opinions we have formed.
Respective Responsibilities of Directors
and Auditors
The directors are responsible for preparing the Annual Report
and the Directors’ Remuneration Report. As described on page
33, this includes responsibility for preparing the financial
statements in accordance with applicable United Kingdom law
and accounting standards. Our responsibilities, as independent
auditors, are established in the United Kingdom by statute, the
Auditing Practices Board, the Listing Rules of the Financial
Services Authority, and by our profession’s ethical guidance.
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements and the part of the Directors’ Remuneration Report
to be audited have been properly prepared in accordance with
the Companies Act 1985. We also report to you if, in our
opinion, the directors’ report is not consistent with the
financial statements, if the Company has not kept proper
accounting records, if we have not received all the information
and explanations we require for our audit, or if information
specified by law regarding directors’ remuneration and
transactions with the Group is not disclosed.
We review whether the statement on pages 28 to 35 reflects the
Company’s compliance with the seven provisions of the
Combined Code specified for our review by the Listing Rules,
and we report if it does not. We are not required to consider
whether the board’s statements on internal control cover all
risks and controls, or form an opinion on the effectiveness of
the Group’s Corporate Governance procedures or its risks and
control procedures.
We read the other information contained in the Annual Report,
including the Corporate Governance statement and the
unaudited part of the Directors’ Remuneration Report, and
consider whether it is consistent with the audited financial
statements. We consider the implications for our report if we
become aware of any apparent misstatements or material
inconsistencies with the financial statements.
Basis of Audit Opinion
We conducted our audit in accordance with Auditing Standards
issued by the Auditing Practices Board. An audit includes
examination, on a test basis, of evidence relevant
to the amounts and disclosures in the financial statements and
the part of the Directors’ Remuneration Report to be audited. It
also includes an assessment of the significant estimates and
judgements made by the directors in the preparation of the
financial statements, and of whether the accounting policies are
appropriate to the Group’s circumstances, consistently applied
and adequately disclosed.
We planned and performed our audit so as to obtain all
the information and explanations which we considered
necessary in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements and the part
of the Directors’ Remuneration Report to be audited are free
from material misstatement, whether caused by fraud or other
irregularity or error. In forming our opinion we also evaluated
the overall adequacy of the presentation of information in the
financial statements and the part of the Directors’ Remuneration
Report to be audited.
Opinion
In our opinion:
• the financial statements give a true and fair view of the
state of affairs of the Company and the Group as at 31
January 2004 and of the total return of the Group for the
year then ended; and
• the financial statements and the part of the Directors’
Remuneration Report to be audited have been properly
prepared in accordance with the Companies Act 1985.
KPMG Audit Plc
Chartered Accountants
Registered Auditor
Edinburgh
22 March 2004

Accounting Policies
41
1 Basis of Accounting
The financial statements have been prepared under the
historical cost convention, modified to include the revaluation
of fixed assets. They assume the going concern basis of
accounting and that the Company will continue to have
approval as an investment trust. They have been drawn up in
accordance with applicable accounting standards and with the
Statement of Recommended Practice “Financial Statements of
Investment Trust Companies.”
The consolidated statement of total return and balance sheet
include the financial statements of the Company and its
subsidiary companies as at 31 January 2004, made up to the
same date.
2 Valuation of Fixed Assets
Listed investments are valued at market prices or middle market
prices as appropriate. Unlisted investments and mineral rights
are valued by the board on the basis of market prices, latest
dealings, stockbrokers’ valuations, petroleum consultants’
valuations and accounting information as appropriate. Foreign
assets and liabilities are valued using the middle rates of
exchange ruling at the year end.
Office premises are shown at the valuation as at 31 January
2004 carried out by chartered surveyors on the basis of existing
use value. No depreciation has been charged on this asset as,
in the opinion of the board, any provision for depreciation
would be immaterial in relation to the revenue for the year and
the assets of the Company.
3 Income
Income from equity shares is brought into account on the
ex-dividend date or, where no ex-dividend date is quoted, when
the Company’s right to receive payment is established.
Income includes any taxes deducted at source. Fixed returns on
non-equity shares and debt securities are recognised on a time
apportionment basis so as to reflect the effective yield on the
investment. Where the Company has elected to receive its
dividends in the form of additional shares rather than in cash,
the amount of the cash dividend is recognised as income. Any
excess in the value of the shares received over the amount of
the cash dividend is recognised in capital reserves.
4 Expenses and Interest
Expenses and interest are accounted for on an accruals basis
using the exchange rate applicable on payment where
appropriate. Expenses are charged through the revenue account
except where they directly relate to the acquisition or disposal
of an investment, in which case they are added to the cost of
the investment or deducted from the proceeds.
5 Taxation
Deferred tax is recognised at the standard rate of corporation
tax, without discounting, in respect of all timing differences
between the treatment of certain items for taxation and
accounting purposes which have arisen but not reversed out by
the balance sheet date. To the extent that timing differences
will not be utilised, then deferred assets are not recognised.
Because the Company intends each year to qualify as an
investment trust under section 842 of the Income and
Corporation Taxes Act 1988, no provision is made for deferred
taxation in respect of the capital gains that have been realised,
or are expected in the future to be realised, on the sale of fixed
asset investments.
6 Reserves
Gains and losses on the realisation of investments and foreign
currency are accounted for in the realised capital reserve.
Increases and decreases in the valuation of investments held at
the year end are accounted for in the unrealised capital reserve.
7 Pension Costs
The pension scheme is a defined benefit scheme and is open to
all qualifying employees who have completed 6 months service.
Contributions are charged against revenue. They are calculated
by reference to actuarial valuations carried out for the trustees
at intervals of not more than three years. They represent a
charge to cover the accruing liabilities on a continuing basis.
Foreign income is converted at the rate of exchange applicable
on the appropriate date.
Savings and pension plans charges are accounted for on the
date on which the underlying transaction occurs.

42
Consolidated Statement of Total Return
£000
2004 2004 2004 2003 2003 2003
Notes Revenue Capital Total Revenue Capital Total
Income
UK dividends 28,771 – 28,771 26,046 – 26,046
UK interest 1,442 – 1,442 1,815 – 1,815
Overseas dividends 14,227 – 14,227 12,648 – 12,648
Overseas scrip dividends – – – 74 – 74
Mineral rights income 724 – 724 515 – 515
Investment Income 1 45,164 – 45,164 41,098 – 41,098
Deposit interest 3,896 – 3,896 5,087 – 5,087
Savings and pension plans charges 1,899 – 1,899 1,974 – 1,974
Miscellaneous 91 – 91 167 – 167
Other Income 5,886 – 5,886 7,228 – 7,228
Total Income 51,050 – 51,050 48,326 – 48,326
Expenses
Operating expenses (7,297) – (7,297) (6,381) – (6,381)
Additional pension contribution – – – (641) – (641)
Total expenses 2 (7,297) – (7,297) (7,022) – (7,022)
Realised losses on investments 7 – (2,915) (2,915) – (22,006) (22,006)
Increase(decrease) in unrealised appreciation 7 – 268,118 268,118 – (446,912) (446,912)
Surplus on revaluation of office premises – 50 50 – – –
Foreign exchange gains – 2,427 2,427 – 235 235
Net Return Before Interest Payable and Taxation 43,753 267,680 311,433 41,304 (468,683) (427,379)
Interest payable 3 (1,152) – (1,152) (1,120) – (1,120)
Return Before Taxation 42,601 267,680 310,281 40,184 (468,683) (428,499)
Taxation 4 (4,103) – (4,103) (4,104) – (4,104)
Return After Taxation 38,498 267,680 306,178 36,080 (468,683) (432,603)
Minority interest - equity (260) 73 (187) (289) (41) (330)
38,238 267,753 305,991 35,791 (468,724) (432,933)
Dividends on preference stock - non-equity 5 (97) – (97) (97) – (97)
Return Attributable to Equity Stockholders 38,141 267,753 305,894 35,694 (468,724) (433,030)
Dividend on ordinary stock - equity 5 (35,532) – (35,532) (35,028) – (35,028)
Transfer to reserves 2,609 267,753 270,362 666 (468,724) (468,058)
Notes Earnings Capital Total Earnings Capital Total
Return per Ordinary Stock Unit 6 75.68p 531.26p 606.94p 70.82p (930.01p) (859.19p)

Company Statement of Total Return
43
£000
2004 2004 2004 2003 2003 2003
Notes Revenue Capital Total Revenue Capital Total
Income
UK dividends 28,771 – 28,771 26,046 – 26,046
Dividends from subsidiary 638 – 638 1,275 – 1,275
29,409 – 29,409 27,321 – 27,321
UK interest 525 – 525 802 – 802
Overseas dividends 14,227 – 14,227 12,648 – 12,648
Overseas scrip dividends – – – 74 – 74
Mineral rights income 724 – 724 515 – 515
Investment Income 1 44,885 – 44,885 41,360 – 41,360
Deposit interest 1,232 – 1,232 2,245 – 2,245
Miscellaneous 25 – 25 10 – 10
Other Income 1,257 – 1,257 2,255 – 2,255
Total Income 46,142 – 46,142 43,615 – 43,615
Expenses
Operating expenses (4,301) – (4,301) (3,398) – (3,398)
Additional pension contribution – – – (328) – (328)
Total expenses 2 (4,301) – (4,301) (3,726) – (3,726)
Realised losses on investments 7 – (2,915) (2,915) – (22,006) (22,006)
Increase(decrease) in unrealised appreciation 7 – 268,333 268,333 – (447,360) (447,360)
Surplus on revaluation of office premises – 50 50 – – –
Foreign exchange gains – 2,427 2,427 – 235 235
Net Return before Interest Payable and Taxation 41,841 267,895 309,736 39,889 (469,131) (429,242)
Interest payable 3 (76) – (76) (84) – (84)
Return before Taxation 41,765 267,895 309,660 39,805 (469,131) (429,326)
Taxation 4 (3,669) – (3,669) (3,607) – (3,607)
Return after Taxation 38,096 267,895 305,991 36,198 (469,131) (432,933)
Dividends on preference stock – non-equity 5 (97) – (97) (97) – (97)
Return Attributable to Equity Stockholders 37,999 267,895 305,894 36,101 (469,131) (433,030)
Dividends on ordinary stock – equity 5 (35,532) – (35,532) (35,028) – (35,028)
Transfer to reserves 2,467 267,895 270,362 1,073 (469,131) (468,058)
Notes Earnings Capital Total Earnings Capital Total
Return per Ordinary Stock Unit 6 75.40p 531.54p 606.94p 71.63p (930.82p) (859.19p)

44
Balance Sheets
£000
Group Group Company Company
Notes 2004 2003 2004 2003
Fixed Assets 7
Office premises 700 650 700 650
Investments 1,466,143 1,155,412 1,475,418 1,162,289
1,466,843 1,156,062 1,476,118 1,162,939
Current Assets
Debtors 9 13,533 10,095 7,085 4,570
Bank deposits 101,221 136,914 25,479 73,907
Cash at bank and in hand 1,607 3,169 460 503
116,361 150,178 33,024 78,980
Creditors: amounts falling due within one year 10 (97,385) (90,757) (32,871) (36,010)
Net Current Assets 18,976 59,421 153 42,970
Total Assets less Current Liabilities 1,485,819 1,215,483 1,476,271 1,205,909
Creditors: amount falling due after more than one year
4 1 /2% debenture stock 1956 or after
- repayable at the Company’s option only 1,648 1,648 1,648 1,648
Minority Interest - Equity 9,548 9,574 – –
11,196 11,222 1,648 1,648
Capital and Reserves
Called-up share capital 5 14,800 14,800 14,800 14,800
Capital reserve - realised 11 995,296 995,784 993,997 994,485
Capital reserve - unrealised 11 418,838 150,597 434,542 166,159
Revenue reserve 11 45,689 43,080 31,284 28,817
Total Stockholders’ Funds 1,474,623 1,204,261 1,474,623 1,204,261
1,485,819 1,215,483 1,476,271 1,205,909
Total Stockholders’ Funds are attributable to:
Equity stockholders 12 1,472,423 1,202,061 1,472,423 1,202,061
Non-equity stockholders 12 2,200 2,200 2,200 2,200
1,474,623 1,204,261 1,474,623 1,204,261
Net Asset Value per Ordinary Stock Unit 6 £29.21 £23.85 £29.21 £23.85
The financial statements on pages 41 to 51 were approved by the board on 22 March 2004 and were signed on its behalf by:
Bruce W M Johnston
Director
Alan J Harden
Director

Cash Flow Statements
45
£000
Group Group Company Company
Notes 2004 2003 2004 2003
Operating Activities
Investment income received 46,382 42,099 44,273 40,424
Interest received 3,345 5,273 1,552 2,170
Underwriting commission received 25 10 25 10
Savings and pension plans charges 1,899 1,974 – –
Miscellaneous income received 55 155 – –
Net amounts received from depositors 9,023 9,318 – –
Expenses (6,960) (7,252) (3,960) (3,716)
Net Cash Inflow from Operating Activities 13 53,769 51,577 41,890 38,888
Dividends from Subsidiary Company – – 638 1,275
Servicing of Finance
Interest paid (1,152) (1,120) (76) (84)
Dividends paid on preference stocks (97) (97) (97) (97)
Dividends paid to minority interests (213) (425) – –
Net Cash Outflow from Servicing of Finance (1,462) (1,642) (173) (181)
Taxation Paid (3,827) (4,312) (3,492) (3,700)
Investing Activities
Purchase of investments (178,067) (163,274) (173,515) (149,670)
Disposal of investments 127,957 151,034 121,806 140,034
Net Cash Outflow from Investing Activities (50,110) (12,240) (51,709) (9,636)
Equity Dividends Paid (38,052) (35,028) (38,052) (35,028)
Net Cash outflow before Management
of Liquid Resources and Financing (39,682) (1,645) (50,898) (8,382)
Management of Liquid Resources
Cash uplifted from short-term deposits 15 38,120 845 50,855 6,491
Decrease in Cash 14 (1,562) (800) (43) (1,891)

46
Notes to the Financial Statements
1 Investment income £000
Group Group Company Company
2004 2003 2004 2003
Listed UK 30,208 28,015 29,292 27,002
Unlisted UK 5 4 642 1,279
Listed overseas 14,227 12,564 14,227 12,564
Unlisted overseas 724 515 724 515
45,164 41,098 44,885 41,360
2 Expenses £000
Group Group Company Company
2004 2003 2004 2003
Directors’ remuneration 576 450 576 430
Staff costs 3,134 2,692 1,641 1,287
Social security costs 310 250 185 142
Regular pension contributions 789 732 416 374
Additional pension contributions – 641 – 328
Remuneration of auditor for audit 32 28 17 17
Remuneration of auditor for regulatory reports on behalf of
Alliance Trust Savings Limited 4 4 – -
Other 2,452 2,225 1,466 1,148
7,297 7,022 4,301 3,726
Details of directors’ remuneration are given on pages 36 to 39. The Group employs 109 (106) full time and 22 (24) part time staff, excluding
directors. Staff costs are shared with The Second Alliance Trust PLC (“the Second Alliance Trust”). Included in staff costs is the sum of £13,000
representing payments to Gavin Suggett, a former director, in respect of salary from the period when he retired as a director.
The management and administration expenses of the Company amounted to £4,301,000 (£3,726,000 or £3,398,000 before the additional pension
contribution) representing 0.29% (0.31% or 0.28% before the additional pension contribution) of the year end attributable net asset value of
£1,472,423,000 (£1,202,061,000). The cost of insured benefits for staff including executive directors is included in other expenses.
3 Interest payable £000
Group Group Company Company
2004 2003 2004 2003
On deposits and overdrafts repayable within 5 years
not by instalments 1,078 1,046 2 10
On debentures repayable wholly or partly in more than 5 years 74 74 74 74
1,152 1,120 76 84
4 Taxation £000
Group Group Company Company
2004 2003 2004 2003
UK corporation tax at 30% 4,216 4,225 3,780 3,727
Overseas taxation 1,743 1,620 1,743 1,620
Deferred taxation (3) (6) (1) (5)
Recovery of French company tax (Avoir Fiscal) (110) (115) (110) (115)
5,846 5,724 5,412 5,227
Relief for overseas taxation (1,743) (1,620) (1,743) (1,620)
4,103 4,104 3,669 3,607
Reconciliation of Tax Charge £000
Return on ordinary activities before taxation 42,601 40,184 41,765 39,805
Items not subject to corporation tax - franked investment income (28,520) (26,044) (29,157) (27,319)
- scrip dividends – (74) – (74)
14,081 14,066 12,608 12,412
UK corporation tax payable at 30% 4,225 4,219 3,783 3,724
Adjustments arising on the difference between taxation
and accounting treatment of income and expenses (9) (10) (3) 3
Prior year adjustment – 16 – -
Corporation tax charge for the year 4,216 4,225 3,780 3,727

47
5 Called up share capital and dividends £000
The authorised share capital of the Company, which has all been
allotted and fully paid, is divided into four classes of preference
stock and one class of ordinary stock. The capital is shown below,
together with the respective dividends
Total Total
Capital Capital Dividends Dividends
2004 2003 2004 2003
Non-equity stock
Preference stocks
4 1 / 4 % cumulative preference stock 700 700 30 30
4% cumulative preference stock 650 650 26 26
5% cumulative preference stock 750 750 37 37
4% ‘A’ cumulative preference stock 100 100 4 4
2,200 2,200 97 97
Equity stock units
Ordinary stock
50,400,000 units of 25p each 12,600 12,600
Interim dividend paid of 35.0p (29.0p) per stock unit 17,640 14,616
Proposed final dividend of 35.5p (40.5p) per stock unit 17,892 20,412
Total dividend 70.5p (69.5p) per stock unit 35,532 35,028
14,800 14,800
Provision has been made in these financial statements for the payment of the final dividend on the ordinary stock and the dividends on the
Company’s preference stocks.
6 Return and net asset value per ordinary
stock unit £000
Group Group Company Company
2004 2003 2004 2003
Earnings 38,141 35,694 37,999 36,101
Capital 267,753 (468,724) 267,895 (469,131)
Total return 305,894 (433,030) 305,894 (433,030)
Equity stockholders’ funds 1,472,423 1,202,061 1,472,423 1,202,061
The return per ordinary stock unit is arrived at by dividing the total return by 50,400,000 (the total number of stock units in issue).
The net asset value per ordinary stock unit is arrived at by dividing the equity stockholders’ funds by the same figure.
7 Fixed assets £000
Group Group Company Company
2004 2003 2004 2003
Office Premises Freehold/Heritable Property
Opening valuation 650 650 650 650
Surplus on revaluation 50 – 50 –
700 650 700 650
J & E Shepherd, Chartered Surveyors, valued the office premises at 31 January 2004, at £700,000 on the basis of existing use value and at
£450,000 on the basis of market value. Both valuations were in accordance with RICS Appraisal and Valuation Standards. The historic cost of the
office premises is £292,000. Existing use value assumes that demand existed for the premises for continuation of office use. However, at the date
of valuation, J & E Shepherd were of the opinion that such demand did not exist. As such, the market value was materially different.
Investments
Investments listed on a recognised investment exchange 1,463,070 1,153,104 1,443,700 1,131,256
Unlisted investments 3,073 2,308 3,073 2,308
Subsidiary companies (note 8) – – 28,645 28,725
1,466,143 1,155,412 1,475,418 1,162,289

48
Notes to the Financial Statements
7 Fixed assets continued £000
Group
Company
investments investments subsidiary total
Opening book cost as at 1 February 2003 1,005,087 983,589 12,900 996,489
Opening unrealised appreciation 150,325 149,975 15,825 165,800
Opening valuation 1,155,412 1,133,564 28,725 1,162,289
Movements in the year
Bond premium amortisation (593) (8) - (8)
Purchases at cost* 177,132 172,580 - 172,580
Sales – proceeds* (131,011) (124,861) - (124,861)
– realised losses on sales (2,915) (2,915) - (2,915)
Increase(decrease) in unrealised appreciation 268,118 268,413 (80) 268,333
Closing valuation 1,466,143 1,446,773 28,645 1,475,418
Closing book cost 1,047,699 1,028,385 12,900 1,041,285
Closing unrealised appreciation 418,444 418,388 15,745 434,133
Closing valuation as at 31 January 2004 1,466,143 1,446,773 28,645 1,475,418
* In accordance with Statement of Recommended Practice “Financial Statements of Investment Trust Companies”, expenses incidental to the
purchase or sale of investments are included within the purchase cost or deducted from the sale proceeds. These expenses include commission
costs of £872,000 (£780,000).
A geographical analysis of the investment portfolio by broad industrial or commercial sector is given on page 25. A list of the twenty largest
investments in the portfolio is given on page 13.
8 Subsidiary companies
The following subsidiary companies, whose results are consolidated in the Group accounts, are incorporated in Scotland
and operate in the United Kingdom.
Name Shares held Principal Activity
Alliance Trust Savings Limited (“ATS”) Ordinary Deposit taking, provision and administration
of savings and pension products
Alliance Trust (Finance) Limited (“ATF”) Ordinary Leasing administration (as agent)
Alliance Trust Leasing Limited (“ATL”) Ordinary Leasing administration (as principal and agent)
The Company owns 75% of ATS and ATF with the remaining 25% of each owned by the Second Alliance Trust. ATF owns
100% of ATL. The investment in subsidiary companies is valued in the Company’s accounts at £28,645,000
(£28,725,000) being the net asset value of the Company’s equity interests taking into account Government securities
at market value.
A summarised statement of the balance sheets of the subsidiaries is shown below. The reports and accounts of all
subsidiary companies are delivered to the Registrar of Companies in Edinburgh.
Summarised balance sheets £000
ATS ATS ATF Group ATF Group
2004 2003 2004 2003
Government securities 13,595 13,573 5,720 7,926
Money at call and short notice 76,926 65,715 2,577 699
Loans to parent companies - – 16,000 16,000
Debtors less creditors - 253 - 61
90,521 79,541 24,297 24,686
Financed by:
Amounts due to depositors 74,346 66,277 - –
Creditors less debtors 2,167 – 166 –
76,513 66,277 166 –
Shareholder funds 14,008 13,264 24,131 24,686
90,521 79,541 24,297 24,686

49
9 Debtors £000
Group Group Company Company
2004 2003 2004 2003
Sales for subsequent settlement 4,989 1,935 4,989 1,935
Loan to The Second Alliance Trust PLC (Note 17) 4,000 4,000 - -
Taxation recoverable 231 433 231 433
Deferred taxation 51 48 19 18
Prepayments and accrued income 3,010 3,073 1,832 2,170
Other debtors 1,252 606 14 14
13,533 10,095 7,085 4,570
10 Creditors: amounts falling due within
one year £000
Group Group Company Company
2004 2003 2004 2003
Amounts due to depositors 71,763 65,579 - -
Purchase for subsequent settlement 1,320 2,255 1,320 2,255
UK corporation tax payable 1,223 1,146 935 960
Loan from ATF (Note 17) - - 12,000 12,000
Proposed dividends 17,941 20,461 17,941 20,461
Amount due to subsidiary company - - - 53
Other creditors 5,138 1,316 675 281
97,385 90,757 32,871 36,010
11 Reserves £000
Group reserves
Company reserves
capital capital capital capital
realised unrealised revenue realised unrealised revenue
Beginning of year 995,784 150,597 43,080 994,485 166,159 28,817
Exchange differences 2,427 - - 2,427 - -
Net loss on realisation of investments (2,915) - - (2,915) - -
Increase in unrealised appreciation - 268,118 - - 268,333 -
Surplus on revaluation of office premises - 50 - - 50 –
Minority interest - 73 - - - -
Retained net revenue for the year - - 2,609 - - 2,467
End of year 995,296 418,838 45,689 993,997 434,542 31,284
12 Reconciliation of movements in
stockholders’ funds £000
Group Group Company Company
2004 2003 2004 2003
Opening equity stockholders’ funds 1,202,061 1,670,119 1,202,061 1,670,119
Total recognised gains and losses after dividend 270,362 (468,058) 270,362 (468,058)
Closing equity stockholders’ funds 1,472,423 1,202,061 1,472,423 1,202,061
Non-equity stockholders’ funds 2,200 2,200 2,200 2,200
There was no movement in non-equity stockholders’ funds during the year.
13 Reconciliation of net revenue before
interest and tax to net cash inflow
from operating activities £000
Group Group Company Company
2004 2003 2004 2003
Net revenue before interest payable and taxation 43,753 41,304 41,841 39,889
Dividend from subsidiary company - - (638) (1,275)
Scrip dividends - (74) - (74)
Amortisation – non-cash adjustment 593 539 8 –
Decrease in accrued income 63 720 338 338
Increase(decrease) in other creditors 3,822 (2,592) 341 14
(Increase)decrease in other debtors (646) 365 - (4)
Increase in amounts due to depositors 6,184 11,315 - –
Net cash inflow from operating activities 53,769 51,577 41,890 38,888

50
Notes to the Financial Statements
14 Reconciliation of net cash flow to
movement in net funds £000
Group Group Company Company
2004 2003 2004 2003
Decrease in cash in the year (1,562) (800) (43) (1,891)
Cash uplifted from short-term deposits (38,120) (845) (50,855) (6,491)
Foreign exchange gains 2,427 235 2,427 235
Movement in net funds in year (37,255) (1,410) (48,471) (8,147)
Net funds at start of year 138,435 139,845 60,762 68,909
Net funds at end of year (Note 15) 101,180 138,435 12,291 60,762
15 Analysis of change in net funds £000
Exchange
2003 Cash flow gains 2004
Group Cash at bank and in hand 3,169 (1,562) - 1,607
Bank deposits 136,914 (38,120) 2,427 101,221
Debenture stock (1,648) - - (1,648)
138,435 (39,682) 2,427 101,180
Company Cash at bank and in hand 503 (43) - 460
Bank deposits 73,907 (50,855) 2,427 25,479
Debenture stock (1,648) - - (1,648)
Loan from ATF (12,000) - - (12,000)
60,762 (50,898) 2,427 12,291
16 Derivatives and other financial instruments
The directors’ report details the Company’s approach to investment risk management on page 34 and the accounting
policies on page 41 explain the basis on which currencies and investments are valued for accounting purposes.
No derivatives were used and no significant short-term borrowings were drawn down during the year to 31 January 2004.
The Company had in issue throughout the year £3,848,000 (£3,848,000) of fixed rate debenture stock and preference
stocks which have no fixed maturity or redemption dates. Their market value at 31 January 2004 was £2,925,000
(£3,167,000), a discount to book value of the equivalent of 1.8p (1.4p) per ordinary stock unit.
17 Related parties
The affairs of the Group are managed in conjunction with those of the Second Alliance Trust and its subsidiary company
Second Alliance Leasing (“SAL”). Although the parent companies are not controlled by common stockholders, the
composition of the Board of each company is currently the same and for the purposes of Financial Reporting Standard 8
the companies are regarded as related parties, requiring disclosure of material, mutual transactions.
The Groups operate from the same office in Dundee, employ staff jointly and share the cost of common services. The basis
of allocation is 75% for the Company and 25% for the Second Alliance Trust after allowing for a contribution from ATS and
reflects the respective sizes of the companies. During the year to 31 January 2004 the Second Alliance Trust paid a
contribution of £757,000 (£744,000).
The minority interest shareholding in ATS and ATF is held by the Second Alliance Trust. ATF has advanced interest free
loans of £12,000,000 (£12,000,000) and £4,000,000 (£4,000,000) to the Company and to the Second Alliance Trust,
respectively. The terms of these loans have been extended and they are repayable in September 2004, or earlier by mutual
agreement, at three months’ notice.
SAL has a deposit facility with ATS, the balance at 31 January 2004 being £300,000 (£302,000) due to SAL.
18 Financial commitments
Financial commitments of the Company as at 31 January 2004, which have not been accrued, amounted to £5,166,611
(£6,187,191) in respect of uncalled subscriptions in investments structured as limited liability partnerships.

51
19 Pension Scheme
The Group, in conjunction with the Second Alliance Trust, operates an insured defined benefit pension scheme (“the
Scheme”) providing benefits based on final pensionable salary. The Scheme’s assets, which are invested to finance members’
pensions on retirement, are held separately from the Group’s funds. The Scheme is administered externally on behalf of the
Trustees. Pension benefits of retired members have been secured by the purchase of annuities from insurance companies.
The Scheme funding rate is determined, at intervals not exceeding 3 years, on the recommendation of a qualified
independent actuary. The latest full actuarial valuation report was carried out as at 1 April 2003. The report was produced
using the projected unit method of valuation. It showed assets valued on a discounted income basis at £10,899,000 and a
surplus of £721,000 over present value liabilities at the report date.
The principal assumptions used in this valuation were:
• Rate of increase in salaries p.a. 5%
• Rate of increase of pensions in payment p.a. 3%
• Rate of increase of deferred pensions p.a. 3%
• Rate of interest p.a. 7%
• Rate of dividend growth p.a. 3.5%
• Inflation assumption p.a. 3%
Following the recommendation of the actuary, the Group and the Second Alliance Trust have adopted a funding rate of 22.1% of
pensionable salaries from 1 April 2004 (23.1% was paid in the previous triennium and an additional contribution of £641,000
was made by the Group in the year to 31 January 2003). This contribution rate is due to be reviewed following the triennial
valuation of the Scheme as at 1 April 2006 and excludes administration fees and insurance premiums for death-in-service
benefits, which the companies pay separately and which total a further 2% (1.9%) of pensionable salaries. The total pension
cost (including administration fees and the cost of insurance of death-in-service benefits) to the Group was £814,000
(£1,373,000). The cost to the Company was £429,000 (£702,000).
Whilst the Group continues to account for pension costs in accordance with Statement of Standard Accounting Practice 24
‘Accounting for Pension Costs’, under Financial Reporting Standard 17 ‘Retirement Benefits’ (“FRS17”) the following
transitional disclosures are required as at 31 January 2004 using the different measurement basis prescribed by the Standard.
In order to meet these requirements, a separate valuation of the Scheme’s present assets and liabilities has been undertaken
by the actuary as at 31 January 2004. The assumptions used by the actuary, which meet the requirements of FRS17, were:
• Rate of increase in salaries p.a. 3.75%
• Rate of increase of pensions in payment p.a. 2.75%
• Rate of increase of deferred pensions p.a. 2.75%
• Rate used to discount scheme liabilities p.a. 5.50%
• Inflation assumption p.a. 2.75%
On these assumptions, the fair value of the Scheme’s assets, and the value of the Scheme’s liabilities at 31 January 2004 were:
£000
Assets 13,046
Liabilities 12,365
Surplus 681
The Scheme’s assets are not intended to be realised in the short-term and their value may be subject to significant change
before they are realised. The liabilities are derived from cash flow projections over long periods and are also subject to
uncertainty.
At 31 January 2004, 53.4% of the assets of the Scheme were held in equities, 44.4% in bonds, 0.8% in property and 1.4% in
current assets.
For the purposes of these financial statements these figures are illustrative only and do not impact on the consolidated
balance sheet at 31 January 2004.
The assumed long-term rate of return over the following year is 5.25% for bonds, 7.0% for equities and property and 4.0% for
other assets.
Group
The costs of the Scheme are shared by the Group and by the Second Alliance Trust based on the allocation of employees’
costs and it is assumed any deficit would also be shared on a similar basis.
Company
Within the Group, the costs of the Scheme are shared on the basis of the work done by individual members of staff on a day
to day basis. The Company pays a proportion of the employers’ total contribution, based on the Company’s share of staff
cost allocation for the year. The Scheme assets are not identified to individuals or to the time periods in respect of which
the original contributions were made. Scheme liabilities are identifiable but not to individual participating employers.
Consequently, in the terms required by FRS17, the Company is unable to identify its share of the underlying assets and
liabilities in the scheme. Accordingly, the Company accounts for its participation in the Scheme as if the Scheme were a
defined contribution scheme.

52
Information for Stockholders
Incorporation
General Enquiries
Information
Confidentiality
Data Protection
Electronic Communications
Taxation
Risks
Table of Indices
Key Dates
Savings Plans
Incorporation
The Alliance Trust PLC is incorporated in Scotland with
the registered number 1731.
General Enquiries
If you have an enquiry about the Company please contact the
Company Secretary at our registered office:
Meadow House, 64 Reform Street, Dundee DD1 1TJ
tel: 01382 201700 fax: 01382 225133
email: contact@alliancetrusts.com
For security and compliance monitoring purposes telephone
calls may be recorded.
Change of address notifications and registration enquiries for
stockholdings registered in your own name should be sent to
the Company’s registrars, who should also be contacted if you
would like dividends on stock registered in your own name to be
sent to your bank or building society account. Our registrars are:
Computershare Investor Services plc
Lochside House, 7 Lochside Avenue, Edinburgh Park
Edinburgh EH12 9DJ
tel: 0870 702 0000 fax: 0870 703 6009
You may check your holdings and view other information about
Alliance Trust stock registered in your own name at
www.computershare.com.
Information
Our website www.alliancetrusts.com contains information about
the Company, including daily price, net asset value and discount
information. The Corporate Governance section of the website
contains the terms of reference of the Audit, Remuneration and
Nomination Committees. These are also available, on request,
from the Company Secretary from whom the terms of
appointment of the non-executive directors are also available.
Confidentiality
We are unable to prevent other parties using the Company’s
register for marketing or other purposes. If you wish to limit
unsolicited mail, you may contact the Mailing Preference
Service at FREEPOST 22, London W16 7E2.

53
Data Protection
The Company is a data controller as defined under the Data
Protection Act 1998. Information received from or about
stockholders or investors (for example from a stockbroker),
whether by telephone or in writing, by fax or by any other
electronic or digital means of communication may be processed.
Information held on the Company’s Register of Members is, by
law, public information and the Company cannot prevent any
person inspecting it or having copies of it, on payment of the
statutory fee.
Electronic Communications
If you hold your stock in your own name we are able to send
you annual reports and notices of meetings electronically instead
of in paper format. If you wish to register for this service
please log on to www.alliancetrusts.com/ec.htm
Taxation
If you are any doubt about your liability to tax arising from a
stockholding in the Company, you should seek professional
advice.
Income Tax
Dividends paid by the Company carry a tax credit at 10% of the
gross dividend. Dividends are paid net of the tax credit.
If you hold your stock in your own name, the tax voucher which
you need for your tax records will be sent to the address we
have for you on the register maintained by Computershare.
If your dividends are received by a nominee, such as your
stockbroker’s nominee, you must contact that person for the tax
voucher. Alliance Trust Savings will automatically supply you
with a consolidated income tax voucher for income received for
you in the Select Investment Plan.
Capital Gains Tax
For investors who purchased their stock prior to 31 March 1982,
the cost of the stock for capital gains tax purposes may be
based on the price of the stock on that date, being £2.85 per
ordinary stock unit.
Risks
On page 3 we provide information on how we manage the risks
in the portfolio. If you hold stock in the Company, you should
take professional advice as to whether an investment in our
stock is suitable for you. You should be aware that:
• Investment should be made for the long term.
• The price of stock will be affected by supply and demand for
it on the London Stock Exchange and may not fully
represent the underlying value of the assets of the
Company. The price generally stands below the net asset
value of the Trust (“at a discount”) but it may also stand
above it (“at a premium”). Your capital return will depend
upon the movement of the discount/premium over the
period you own the stock, as well as the capital
performance of the Company’s own assets.
• The assets owned by the Company may have exposure to
currencies other than Sterling. Changes in market
movements and in rates of exchange may cause the value of
your investment to go up or down.
• Past performance is not necessarily a guide to the future.
What you get back will depend on investment performance.
You may not get back the amount you invest.
Table of Indices
(to 31 January 2004)
1 year 10 years 10 years
absolute absolute compound
FTSE All-Share Index 27.0% 25.3% 2.3%
FTSE World Index 30.1% 59.9% 4.8%
MSCI World Index 29.6% 59.9% 4.8%
FTSE World ex UK (£) 24.3% 36.5% 3.2%
US Standard and Poor’s
500 Index (£) 19.4% 93.4% 6.8%
NASDAQ Composite 56.4% 158.1% 9.9%
Wilshire 5000 Total
Market Index 35.7% 129.9% 8.7%
FTSE World Europe ex UK (£) 33.3% 64.9% 5.1%
FTSE Asia Pacific ex Japan (£) 29.7% (31.3%) (3.7%)
Tokyo Topix Index (£) 30.5% (45.4%) (5.9%)
UK Investment Property
Databank 4.1% 30.8% 2.7%
Retail Price Index 2.6% 29.6% 2.6%
Consumer Price Index 1.4% 17.8% 1.6%
Source: Thomson Financial Datastream

54
Information for Stockholders
Key Dates
Annual General Meeting
The 116th Annual General Meeting of the Company will be held at 11.30am on Friday 30 April 2004 at the Invercarse Hotel,
Perth Road, Dundee. The meeting will include a presentation by the Chief Executive, Alan Harden. The notice of the meeting
is sent separately to stockholders.
Financial Calendar
Date
Final Dividend and AGM for the year to 31 January 2004
Ex-dividend date 14 April 2004
Annual General Meeting 30 April 2004
Final dividend payment date 10 May 2004
Interim Dividend for the year to 31 January 2005
Proposed announcement date 23 August 2004
Proposed ex-dividend date 15 September 2004
Proposed payment date 1 October 2004
Investor Events Date Location
Investor Seminar Wednesday 23 and Cranfield School of Management,
Thursday 24 June Cranfield, Bedfordshire
Investor Seminar Wednesday 29 September The Haynes Conference Centre,
Sparkford, Near Yeovil, Somerset
If you would like to attend an Investor Seminar, please contact us on 01382 306006 or
email contact@alliancetrusts.com. Places are available on a first come first served basis.
Information about events after September 2004 will be posted on www.alliancetrusts.com

55
Savings Plans provided by
Alliance Trust Savings
Alliance Trust Savings (“ATS”) provides and administers the
Select Range of savings plans.
The main features of the plans are:
• Self-select investment choice in securities listed on the
London Stock Exchange, including the Alliance Trust.
Investment in a range of corporate bonds, gilts, open ended
investment company funds and exchange traded funds is
also available. Cash may also be kept on deposit with ATS
which is a bank.
• No advice is given by ATS. Customers make their own
investment decisions within the terms of the contract with
ATS (full details of which are in the Key Features and
Handbooks for each Plan, available from ATS).
• Charges are levied by ATS on a transaction basis, not on the
value of the assets held by ATS for each customer.
Select Pension
The Select Pension, which is a self-invested personal pension
(“SIPP”), is designed to accommodate the need of many
individuals for a pension capable of travelling with them
throughout life. The SIPP structure gives each individual
pension member control of and direct entitlement to his or her
own pension assets. The flexibility of the Select Pension means
that, as time passes and pension assets grow, investments can
be changed without moving providers.
Select PEP
Subscriptions cannot now be made to PEPs, but PEPs can be
retained and managed. The Select PEP gives an opportunity for
maximum efficiency at low cost, as PEPs with other managers
can be transferred in and the PEP portfolio rationalised. Unlike
many other providers, ATS has no PEP transfer-in charge
(dealing charges after transfer still apply).
Select ISA
The Select ISA, as well as accepting transfers, is available for
subscriptions up to the annual limit (£7,000 in 2003/04 and
2004/05). Stocks and shares and cash components are available
on a maxi or mini basis with the cash component also available
on a TESSA-only basis. Tax-free interest is payable in the cash
component and the full Select choice of securities is available
in the stocks and shares component. As with the PEP, there is
no transfer-in charge (dealing charges after transfer still apply).
Select Investment Plan
The Select Investment Plan is a general purpose, flexible, savings
vehicle with no tax advantages and, consequently, no maximum
subscription restriction. Subscriptions can be made by regular
direct debits to reduce investment timing risk and to benefit
from pound cost averaging. The transaction based charging
structure works particularly efficiently where very large amounts
are subscribed or transferred in. Whole investment portfolios may
be transferred to ATS for long term custody and administration.
Investing for Children
Both the Select Pension and the Select Investment Plan may be
used as a means of investing for children. The flexibility of each
plan means that an investment may be made in the stock of the
Alliance Trust only, or a portfolio may be built up for a child
chosen from the full range of investments in the Select choice.
How to get more information
Information on the Select plans may be obtained from:
Alliance Trust Savings Limited
Meadow House, 64 Reform Street, Dundee DD1 9YP
tel: 01382 306006 • fax: 01382 202250
email: contact@alliancetrusts.com
For security and compliance monitoring purposes telephone
calls may be recorded.
Risk Warning
ATS is authorised and regulated by the Financial Services
Authority. Plans are provided on a direct offer transaction basis
and marketed only in the United Kingdom to UK investors. No
advice is given by ATS.
Most charges are transaction based and may be high or low
depending on how you manage the investments in your plan.
The value of investments and any income from them may go
down as well as up and you may not get back the amount you
put in. Past performance is no guide to future returns. Taxation
levels, bases and reliefs are subject to change and may depend
on individual circumstances.
The information on this page is issued and approved by Alliance Trust Savings Limited, PO Box 164, Meadow House, 64 Reform Street, Dundee DD1 9YP

Cover photograph: a view of the City of Dundee from the southern banks of the River Tay
Printed by Pillans and Waddies, Edinburgh 75417